Spotify lets users create playlists of songs for free, although tracks are peppered with adverts just like commercial radio.
However, for 99p, Spotify users can purchase a whole day of ad-free listening time, or alternatively pay a £10 monthly subscription and never hear an advert again.
The service also allows users to create 'collaborative' playlists, which are assigned their own web addresses, and can then be added to by other Spotify listeners.
A Spotify spokesperson told Broadband Genie: "This looks like a fairly crude method that simply records the sound coming out of a users sound card, nothing new or revolutionary. Looking a bit deeper you'll find that the site links to a piece of software that actually costs money to work properly. Clearly this site is using our name to trying and benefit themselves and we'll take appropriate actions."
See also: Apple approves Spotify for iPhone