{"id":128390,"date":"2025-03-12T12:40:33","date_gmt":"2025-03-12T12:40:33","guid":{"rendered":"https:\/\/peraltafinancing.com\/affiliate-marketing\/influencers-commission-hijacking-suits-have-rocky-legal-road-2\/"},"modified":"2025-03-12T12:40:33","modified_gmt":"2025-03-12T12:40:33","slug":"influencers-commission-hijacking-suits-have-rocky-legal-road-2","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=128390","title":{"rendered":"Influencers&#8217; Commission Hijacking Suits Have Rocky Legal Road"},"content":{"rendered":"<p> <br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/db0ip7zd23b50.cloudfront.net\/dims4\/default\/0c18ef0\/2147483647\/crop\/3998x1541+0+728\/resize\/960x370%3E\/quality\/90\/?url=http%3A%2F%2Fbloomberg-bna-brightspot.s3.amazonaws.com%2F79%2Ff3%2Fca18bc9c41af9660412eb7a0f022%2Fmarch3-paypal-pic.jpg\" \/><\/p>\n<div>\n<p>Social media content creators\u2014including a <a href=\"https:\/\/www.bloomberglaw.com\/public\/document\/BrodieThatDoodIncvPayPalIncetalDocketNo525cv01476NDCalFeb122025Co?doc_id=XRJ5SREO3T83IRHNK9UH31KRJT\">golden doodle<\/a>, a <a href=\"https:\/\/www.bloomberglaw.com\/public\/document\/WendoverProductionsLLCetalvPayPalIncDocketNo524cv09470NDCalDec292?doc_id=X6MCDLLOI319DFORM1JRIVEDLAR\">video essayist<\/a>, and a <a href=\"https:\/\/www.bloomberglaw.com\/public\/document\/StormProductionsLLCvMicrosoftCorporationDocketNo225cv00203WDWashJ?doc_id=XKAVBECLPL8SKAMHL7PMRPKIRP\">fashion blogger<\/a>\u2014accusing PayPal Inc. and others of cutting into their affiliate marketing commissions are likely to have a hard time convincing the courts that the practice is illegal.<\/p>\n<p>Influencers have filed a wave of lawsuits over browser extensions like PayPal\u2019s Honey that they <a data-terminal-id=\"SPBM4OT1UM0W\" href=\"https:\/\/news.bloomberglaw.com\/litigation\/paypals-honey-extension-accused-of-hijacking-affiliate-links\">say<\/a> \u201csteal\u201d last-click attributions when their followers use their link to purchase something online. <\/p>\n<p>The online marketing practice credits a sale to a customer\u2019s last digital touch-point before making a purchase.<\/p>\n<p>Yet e-commerce scholars are skeptical the content creators can show the companies unlawfully blocked their earnings. <\/p>\n<p><a href=\"https:\/\/law.northeastern.edu\/faculty\/roberts\/\">Alexandra Roberts<\/a>, professor of law and media at Northeastern University School of Law, said the litigation will be an uphill battle. <\/p>\n<p>The browser extension \u201cearns revenue from affiliate marketing partnerships with e-commerce platforms,\u201d she said. \u201cArguably, these are similar players competing for the same pot of money and I don\u2019t know that that gets you intentional interference\u201d with a contract, she said. <\/p>\n<p>But the reputational stain of the class action litigation has the potential to lead brands and influencers to rethink how they track attributions and advertise deals going forward. <\/p>\n<p>Influencers might try to negotiate discount deals that match the coupon from Honey, said <a href=\"https:\/\/www.sandiego.edu\/directory\/biography.php?profile_id=6256\">Colin Campbell<\/a>, a marketing professor at the University of San Diego. <\/p>\n<p>But alternatives to the current affiliate link system can lock in bigger content creators with established audiences and block smaller influencers from growing their followers, he said. <\/p>\n<p>Affiliate links are \u201crelatively low-cost\u201d for smaller creators compared to people with larger audiences who could command a flat fee for a certain number of product posts because of the bigger customer base, Campbell said.<\/p>\n<h2>Marketplace Competitors<\/h2>\n<p>The lawsuits follow a December 2024 YouTube <a href=\"https:\/\/www.youtube.com\/watch?v=vc4yL3YTwWk\">essay<\/a> from creator MegaLag who called Honey the \u201cscam of the century.\u201d That video currently has more than 17 million views. <\/p>\n<p>Content creators also targeted couponing browser extensions from <a data-terminal-id=\"SQI6YWDWX2PS\" href=\"https:\/\/news.bloomberglaw.com\/litigation\/capital-one-hijacks-content-creator-affiliate-links-suit-says\">Capital One Corp.<\/a>, <a href=\"https:\/\/www.bloomberglaw.com\/public\/document\/ThompsonvKlarnaIncDocketNo225cv00124SDOhioFeb102025CourtDocket?doc_id=X4VSTV057NP9Q99BUVHC7MM09QU\">Klarna Inc.,<\/a> and <a href=\"https:\/\/www.bloomberglaw.com\/public\/document\/BlotnickietalvMicrosoftCorporationDocketNo225cv00349WDWashFeb2420?doc_id=X4U4IKQRNRC8JEBJ4K7UNOF66T6\">Microsoft Corp.<\/a><\/p>\n<p>The extensions promise users the best online shopping deal. <\/p>\n<p>\u201cThese lawsuits target a broad number of industry participants and challenge agreed-upon-industry practices,\u201d a spokesperson for Honey said. \u201cWe disagree with the claims in these lawsuits and look forward to defending ourselves.\u201d <\/p>\n<p>A spokesperson for Microsoft said its shopping feature follows industry standards and the claims \u201care without merit,\u201d while Capital One said we \u201cdisagree with the premise of the complaints.\u201d<\/p>\n<p>Klarna didn\u2019t respond to a request for comment.<\/p>\n<p>A handful of complaints against PayPal were recently <a href=\"https:\/\/www.bloomberglaw.com\/public\/document\/InrePayPalHoneyBrowserExtensionLitigationDocketNo524cv09470NDCalD?doc_id=X36O71BO48I9SSR83FVGA01SNMN\">consolidated<\/a>, and more suits have been filed since. All are in the early stages of litigation. <\/p>\n<p>Devin Stone, an attorney who runs the LegalEagle YouTube channel and one of the first plaintiffs in the Honey litigation, has called the Honey a \u201csleeping leech.\u201d <\/p>\n<p>Other prominent creators like <a href=\"https:\/\/www.youtube.com\/watch?v=efLN9yZvaWo\">Hank Green<\/a> have criticized Honey\u2019s business model and creator ecosystem more generally, which Green called \u201cripe for exploitation.\u201d <\/p>\n<p>But both the Honey extension and content creators make money through commissions based on last-click attributions, so it\u2019s not clear whether the alleged conduct is unlawful as opposed to fair competition, attorneys and scholars say.<\/p>\n<p><a href=\"https:\/\/robertfreundlaw.com\/about\/\">Robert Freund<\/a>, a lawyer who specializes in e-commerce and advertising law, said that though PayPal\u2019s alleged conduct might \u201cfeel kind of slimy,\u201d the content creators\u2019 legal claims don\u2019t appear viable because there\u2019s a causation problem. <\/p>\n<p>\u201cIt\u2019s too far of a reach to say that if it weren\u2019t for PayPal, they 100% would\u2019ve gotten the commission,\u201d Freund said. <\/p>\n<p>It\u2019s also possible that some of the consumers wouldn\u2019t have made their purchase if not for the discount provided through the browser extension, he said. <\/p>\n<p>Attribution determination is a broader problem within e-commerce marketing, Campbell said.<\/p>\n<p>\u201cAs is often the case, we don\u2019t tend to see one ad and buy something, but instead we\u2019re seeing many ads over days or even months or years,\u201d he said. \u201cWhoever is the final person that we buy from, whatever the final ad is, they get the credit for all of the other stuff that you\u2019ve seen as well too.\u201d<\/p>\n<h2>Rise of Affiliate Marketing<\/h2>\n<p>Affiliate marketing isn\u2019t new. As the internet blossomed in the 1990s, e-commerce aimed at consumers did too. <\/p>\n<p>Amazon.com Inc. launched Amazon\u2019s Associates Program in 1996, allowing anyone who signed up and promoted Amazon product links to earn a commission if the link resulted in sales. <\/p>\n<p>Amazon <a href=\"https:\/\/affiliate-program.amazon.com\/\">calls<\/a> the initiative one of the largest affiliate marketing programs in the world. Many content creators have <a href=\"https:\/\/www.amazon.com\/amazon-storefront-start\/b?ie=UTF8&amp;node=53641474011\">\u201cAmazon Storefronts\u201d<\/a> that are an assortment of clothing or home goods products featured in their videos. <\/p>\n<p>Affiliate marketing also expanded with the rise of user-generated content and influencer culture. <\/p>\n<p>YouTube now <a href=\"https:\/\/support.google.com\/youtube\/answer\/13376398?hl=en&amp;co=GENIE.Platform%3DAndroid\">allows<\/a> people whose channels have more than 10,000 subscribers to earn commissions from tagged products, and the video platform also has an affiliate hub that links creators and product makers. ByteDance Ltd. runs a similar program through <a href=\"https:\/\/business.tiktokshop.com\/us\/affiliate\">TikTok Shop.<\/a> <\/p>\n<p>Globally, brands and retailers spend more than $20 billion on publisher commissions annually, Bain Capital Ventures partner Scott Friend <a href=\"https:\/\/baincapitalventures.com\/insight\/the-creator-economy-is-breathing-new-life-into-affiliate-marketing\/\">wrote<\/a> on the firm\u2019s site. <\/p>\n<p>But as content creators rethink their relationships with Honey and other couponing applications, their audience members are reconsidering how they shop. <\/p>\n<p>More than 3 million Google Chrome users have <a href=\"https:\/\/9to5google.com\/2025\/01\/03\/honey-paypal-chrome-extension-lost-users\/\">uninstalled<\/a> the Honey extension from their browsers as of January. <\/p>\n<p>In response to the blowback, Campbell suggested that influencers could demand a system similar to the way airlines and hotels advertise deals. <\/p>\n<p>Those businesses prefer people book directly with them rather than through aggregator companies, and they encourage that through \u201cbest price guarantees,\u201d he said. <\/p>\n<p>Brands themselves might move toward a resurgence in coupon codes rather than tracking attribution through links. <\/p>\n<p>But don\u2019t expect a sea change in the law.<\/p>\n<p>\u201cIf you have any experience with using affiliates, there\u2019s a lot of shady and illegal stuff that goes on,\u201d Freund said. \u201cOn the spectrum of things that are sad about affiliate marketing, the PayPal stuff is pretty on the white side of that spectrum.\u201d<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Social media content creators\u2014including a golden doodle, a video essayist, and a fashion blogger\u2014accusing PayPal Inc. and others of cutting into their affiliate marketing commissions are likely to have a hard time convincing the courts that the practice is illegal. Influencers have filed a wave of lawsuits over browser extensions like PayPal\u2019s Honey that they [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":128391,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11761],"tags":[34619,10904,56056,21019,6036,24339,56055,56054,2683,7187,33259,8374,1262],"dealstore":[],"offerexpiration":[],"class_list":["post-128390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-affiliate-marketing","tag-ballot-initiatives","tag-commission","tag-hijacking","tag-influencers","tag-legal","tag-online-advertising","tag-online-sales","tag-payment-systems","tag-road","tag-rocky","tag-small-businesses","tag-social-media","tag-suits"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Influencers&#039; Commission Hijacking Suits Have Rocky Legal Road - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=128390\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Influencers&#039; Commission Hijacking Suits Have Rocky Legal Road - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Social media content creators\u2014including a golden doodle, a video essayist, and a fashion blogger\u2014accusing PayPal Inc. and others of cutting into their affiliate marketing commissions are likely to have a hard time convincing the courts that the practice is illegal. 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