What is the major compliance restriction regarding potential for monetizing public playlists on Spotify?

The major compliance restriction is the requirement for full transparency and disclosure regarding sponsored or paid placements. Spotify's terms of service prohibit deceptively promoting tracks without clearly indicating that the inclusion was paid for or incentivized. If a playlist curator receives compensation or other benefits for adding a track, they must disclose this relationship to their listeners, typically through disclaimers in the playlist description or within social media posts promoting the playlist. Failure to disclose paid placements violates Spotify's policies and can result in penalties, including playlist removal, account suspension, or legal action for deceptive advertising. It also damages the curator's credibility with their audience.