A new lawsuit alleges that PayPal-owned browser extension Honey is defrauding its creators.
honey PayPal was acquired in 2019 for $4 billion.It works by automatically presenting users with relevant coupon codes and their store. However, Here's a video posted last month.YouTuber MegaLag described Honey as a “scam” that “steals money from influencers.”
Among other allegations; If a YouTuber or other creator promotes a product through an affiliate link; If you install the viewer Honey. MegaLag says it will secretly replace its own link if Honey doesn't provide it when purchasing a viewer. Discounts. This means that Honey, not the creator, receives the affiliate revenue for the transaction.
Devin Stone, now based in Washington, DC. lawyer Uploader of his popular videos. LegalEagle YouTube Channelthere is. PayPal was sued.Claiming that the company “systematically diverts commissions from legitimate earners and undermines the affiliate marketing system.”
“Adding an element of irony, PayPal enlists content creators and influencers to promote the Honey browser extension to their audiences, effectively robbing them of commissions and other revenue-based benefits creators earn,” Stone said in his lawsuit.
TechCrunch has reached out to PayPal for comment. the company shared the announcement with The Verge. It disputed the allegations and said it would “vigorously defend” it, adding that “Honey follows industry rules and practices, including last-click attribution” (an ad attribution system that takes all credit for a purchase from the last touch).
As usual, there are also stones. A video was uploaded. According to the lawsuit, Honey's creators' marketing efforts promoted the browser extension to their fans — and once those fans installed it, Stone said, it was like a “sleeping worm” on their browsers. “Awaiting the viewer. A transaction.”
“So subsequently, the creator's future sponsors and future affiliate relationships and advertising are devalued now that the creator's audience is infected,” he said.
Stone added that they are seeking class action status for the lawsuit. Looking for other creators to join..