Overview
Spotify leads the streaming category with a score of 52/100, earning the "Best in Category" distinction. While this still places them in Grade C territory, their terms are notably more transparent than competitors. They provide clearer data practices disclosure and a straightforward cancellation process, though they still collect extensive listening data and reserve broad rights to modify the service.
The main concerns are around data collection scope (listening history, device information, voice commands), content availability (songs can disappear without notice), and the standard arbitration clause with class action waiver that plagues the entire industry.
Key Gotchas
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⚠️ Extensive Listening Data Collection
Spotify collects and analyzes your listening history, search queries, playlist data, and even voice commands to Spotify features. This data is used for advertising and shared with third parties for targeted ads across platforms.
Section 4: Personal Data Collection and Use -
⚠️ Content Can Disappear Without Notice
Artists and labels can remove music at any time. Your carefully curated playlists may have songs disappear with no notification or ability to export your playlist data to other services.
Section 6: Content and Licensing -
⚠️ Family Plan Verification
Spotify reserves the right to verify that Family Plan members live at the same address using GPS data and may terminate the plan if members are found to live separately.
Section 3: Subscription Plans -
🔴 Mandatory Arbitration
Like all streaming services, disputes must go through individual arbitration. Class action lawsuits are prohibited, even for widespread issues affecting millions of users.
Section 10: Disputes and Arbitration
Positive Aspects
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✅ Clear Cancellation Process
One of the easiest cancellation flows in streaming - can be done in-app with just a few clicks. No retention offers or dark patterns to navigate.
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✅ 30-Day Price Change Notice
Spotify commits to providing 30 days notice before any price increases take effect, giving you time to evaluate and cancel if desired.
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✅ Transparent Privacy Dashboard
Account privacy settings page shows what data is collected and allows you to download your data or opt out of some (but not all) data sharing.
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✅ Unlimited Offline Downloads
Premium users can download unlimited songs for offline listening with no artificial device or track limits.
Score Breakdown
Category Scores
The Bottom Line
Spotify is the best option in the streaming category from a ToS perspective, but that's a low bar. Their terms are more transparent than competitors, with clearer data practices and easy cancellation. However, they still collect enormous amounts of listening data for advertising purposes and maintain the same problematic arbitration clauses as everyone else.
If you're going to use a music streaming service, Spotify's terms are the least problematic. Just be aware that your listening habits are being extensively analyzed and monetized.