On June 20, 2025, Senators Marsha Blackburn (R-Tenn.) and Ben Ray Luján (D-N.M.) formally urged the FTC to investigate Spotify’s automatic conversion of Premium subscribers to higher-priced bundled plans.

In a letter to FTC Chair Andrew Ferguson, the senators wrote:

“We have serious concerns about Spotify’s recent move to convert all of its premium music subscribers into different — and ultimately higher-priced — bundled subscriptions without their knowledge or consent.”

They added:

“This practice deprives consumers of choice and deprives music publishers of hundreds of millions of dollars in royalties, as Spotify can now pay a reduced royalty rate under federal regulations governing bundled offerings.”

Spotify defended its approach via Variety, stating:

“Our approach to expanding its offering and raising prices is industry standard. We notify users a month in advance of any price increases and offer easy cancellations as well as multiple plans for users to consider.”

The letter follows the dismissal of a related lawsuit by the Mechanical Licensing Collective and signals growing regulatory attention to bundling practices that could alter pricing and royalties without explicit user consent.

Insider Take

The senators’ letter marks a clear escalation in scrutiny of subscription practices that blend upselling with price changes. What began as a legal dispute over royalties has evolved into a broader regulatory conversation about how subscription businesses structure their offerings and how clearly they communicate changes to consumers.

This development signals potential shifts in compliance expectations for subscription executives. As the FTC weighs its response, businesses should assess how their bundling, pricing, and consent flows might appear under a regulatory lens.

Here’s what subscription leaders should consider:

1. Transparency vs. Convenience
   Subscription teams must distinguish between convenience-led bundling and consent-driven upselling. Spotify’s case highlights the risk: automatic upgrades, even with notice, can trigger regulatory attention if users feel blindsided.

2. Regulatory Red Flags
   The FTC increasingly views bundling as a potential unfair marketing or pricing tactic. Companies need clear, proactive communication, and consent should precede changes, not follow.

3. Royalty and Profit Implications
   While bundling reduced Spotify’s royalty costs, it also drew legal and reputational scrutiny. Subscription executives should model the full cost-benefit, not just short-term savings, but long-term regulatory and brand impact.

4. Industry Precedent
   This shifts the subscription landscape. Regulators may now expect opt-in standards, especially when bundling leads to price increases.

5. Strategic Response Blueprint
   Executives should anticipate similar probes. Best practices include transparent A/B testing, segmented rollouts with opt-in, clear subscription tier distinctions, and monitoring post-change metrics on downgrades or churn.

As federal regulators weigh their next steps, subscription executives across industries should consider the Spotify case a bellwether. Bundling strategies, consent practices, and price transparency are no longer just operational choices; they are compliance imperatives. In a subscription economy shaped by evolving consumer protections and royalty frameworks, companies that lead with clarity and fairness will be better positioned to navigate regulatory scrutiny and sustain customer trust.