In a recent development, Capital One Shopping, a browser extension owned by Capital One, is facing a class-action lawsuit filed on January 23, 2025, in the U.S. District Court for the Eastern District of Virginia.
Honey-like operations
The lawsuit alleges that the extension engages in deceptive practices by replacing content creators’ affiliate links with its own during the checkout process, thereby diverting commissions from creators to itself. This practice, known as “last-click attribution,” is claimed to have caused significant revenue losses for creators.
This lawsuit mirrors a similar case against PayPal’s Honey extension, which has been accused of substituting creators’ affiliate links with its own, thereby misappropriating commissions. Both Honey and Capital One Shopping have denied these allegations, asserting adherence to industry-standard practices.
Prominent YouTubers Edgar Oganesyan of TechSource and Matthew Ely of Toasty Bros are leading the lawsuit, reporting declines in affiliate earnings despite increased audience engagement. Their legal representatives argue that Capital One Shopping’s actions constitute a “blatant exploitation” of creators’ efforts.
A scheme that steals creator’s potential earnings
The core issue revolves around the “last-click attribution” model, a common method in affiliate marketing that credits the last affiliate link clicked before a purchase. Critics argue that browser extensions exploiting this model undermine creators’ earnings and distort the effectiveness of affiliate marketing campaigns.
These legal actions highlight the growing tension between content creators and browser extensions over affiliate revenue. As the digital marketing landscape evolves, the need for clear guidelines and ethical standards becomes increasingly evident to ensure fair compensation for creators’ contributions.
Image courtesy: Capital One