Spotify offers Car Thing refunds as it faces lawsuit over bricking the streaming device

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Image Credits: Spotify

“Spotify is facing continued backlash over its decision to discontinue support for Car Thing, its in-car streaming device, announced earlier in May. The device will no longer work starting on December 9, 2024, the company said. On TikTok, Gen Z users are posting videos to express their discontent with Spotify’s move and its recommended actions — like switching to Android Auto or CarPlay. Often, they didn’t have access to built-in infotainment systems in their car in the first place, making them a target market for a dedicated player like Car Thing, the users note.

The streaming service’s in-car gadget hadn’t been out on the market long enough to make it obsolete. It launched in February 2022 and was discontinued later that same year but with promises to keep it operational for those who already bought units. Ahead of its launch, Spotify CEO Daniel Ek had suggested there was consumer demand for such a product, telling investors on an earnings call that more than 2 million users had signed up on the Car Thing waitlist in anticipation of its release.

Image Credits: Spotify

Though Spotify never shared official numbers, it’s likely that Car Thing underperformed or was just not worth continued investment in today’s tighter economic market. The latter saw Spotify laying off around 1,500 staffers late last year, for example, after cuts earlier in the year that had affected hundreds.

Car Thing users, however, don’t care about the company’s financial concerns; they just want their gadget to work, or at least be refunded for its $90 price tag.

That’s led to some trying to directly complain to Spotify via DMs on X with @SpotifyCares or through various Spotify emails shared on Reddit. By doing so, some users reported that Spotify offered them several months of a Premium subscription to make up for their loss, while others claimed they asked customer service and were told no one was being reimbursed.

Spotify tells TechCrunch that it has more recently instituted a refund process for Car Thing, provided the user has proof of purchase.

Spotify’s headaches around Car Thing’s discontinuation are not over yet, despite the newly introduced — if not widely broadcast — refund process. The company is also facing a class action lawsuit filed in the U.S. District Court for the Southern District of New York, which claims Spotify misled consumers by selling them a soon-to-be obsolete product and then not offering refunds, reports Billboard. The suit was filed on May 28.

Though the troubles around Car Thing won’t affect all of Spotify’s user base, the news comes at a time when users are already upset that they’re being asked to pay more for things they consider core to a music service, like access to lyrics, a feature Spotify recently paywalled. In addition to complaints over Car Thing, users are threatening to quit Spotify over the paid access to lyrics.

In addition, Spotify upped its subscription rates last year, and another increase is on its way in 2024, Bloomberg reported.”

-Perez, S. (2024, May 30). Spotify offers car thing refunds as it faces lawsuit over bricking the streaming device. TechCrunch. https://techcrunch.com/2024/05/30/spotify-begins-offering-car-thing-refunds-as-it-faces-lawsuit-over-bricking-the-streaming-device/


I first heard about the Spotify Car Thing from the Youtube video “Tech Products That Should Not Exist” by Danny Gonzalez (Gonzalez, 2024). I watched it last week and was suprised that I had heard nothing about a product from one of the largest music streaming companies in the world, only to learn that it had only been advertised through email. This is one of those projects that turns out to be better i theory than in practice. People with older car models liked the idea that there could be an easier way to connect their phone to their car, but apparently the Car Thing simply acts as a screen with a volume adjustment knob and the user still has to plug their phone into their car the same way while connecting to the Car Thing through bluetooth. I wish Spotify did more research into what their customers would want out of a product like this so that the product turned out better, but their oddly secretive marketing is probably indicative of a similar research and development method. As for the company cutting off support for the device, it’s a strange move on Spotify’s part because it punishes the people who bought the Car Thing and want to keep using it.

-Gonzalez, D. (2024, July 31). Tech Products That Should Not Exist. YouTube. https://youtu.be/22dquW4EYsQ?si=imPYEKoDEnC3KKUb