PayPal’s Honey browser extension faces a class action lawsuit for allegedly stealing affiliate commissions from content creators. The lawsuit, led by YouTube lawyer Devin Stone, known as LegalEagle, claims Honey replaced influencers’ affiliate links with its own, depriving them of rightful earnings.
“You could call it an adpocalypse happening every single day without creators even knowing,” Stone says. The legal team, which includes several prominent attorneys, seeks monetary damages and an injunction to halt Honey’s practices.
Allegations sparked by MegaLag’s video
This legal action comes shortly after a video exposé by YouTuber MegaLag, who described Honey’s actions as “the biggest influencer scam of all time.” MegaLag alleged Honey used “last click attribution” to redirect affiliate earnings to itself, causing creators to lose income they worked hard to generate.
The allegations don’t just affect creators relying on affiliate links. “If Honey is indeed intercepting affiliate attributions, it undermines the trust advertisers place in social media platforms,” Stone explains. Since platforms like YouTube and Instagram depend on advertising revenue, such practices could have a ripple effect on all creators, even those not using affiliate marketing.
PayPal denies claims
In response, PayPal defended Honey’s practices, stating, “Honey helps merchants reduce cart abandonment and comparison shopping while increasing sales conversion. It follows industry standards, including last click attribution.” However, creators like YouTuber Sam Denby and comedian Ali Spagnola argue these actions could cost creators billions of dollars over time.
The lawsuit not only seeks compensation but also aims to set a precedent for protecting creators from similar business models. “This case might inspire creators to stand against predatory practices,” Stone said.
As the legal battle unfolds, creators are encouraged to come forward if they suspect Honey has impacted their earnings.
Image courtesy: LegalEagle