Hey @thedrumshredder
Thanks for bringing this up. It looks like the labels and tags sections are being used interchangeably in the playlist exchange section. Tags are mainly used and they are for describing the genre and sound of the playlist so it is easier to find in search.
You should be able to leave the label field blank. I have passed on this thread to staff as feedback and maybe they can make it less confusing.
MattSudaSpotify Star
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