You get that thing I sent ya?
Lawyer and YouTuber LegalEagle (more professionally known as Devin Stone) is suing PayPal over the browser extension Honey allegedly cheating YouTubers out of affiliate link payments.
Back in 2019, PayPal acquired Honey for around $4 billion. The way the app/browser extension is supposed to work is that it automatically presents a coupon for any given item a user might wish to purchase online, assuming such a coupon exists.
The plot, however, starts a month back. YouTuber MegaLag released a video detailing the way in which Honey had apparently been screwing YouTubers out of affiliate link money.
As MegaLag explains it, imagine a creator promotes a product through an affiliate link. Normally, an affiliate link will take you to the product’s page, usually with some extra HTML that kicks a little bit of money back to that creator when someone buys that product through their link, sort of like a commission. What Honey is allegedly doing, according to MegaLag, is it surreptitiously substitutes its own link for that creator’s, even when there is no coupon, when that user makes a purchase. In turn, Honey is essentially pocketing that affiliate money for itself.
Fast forward to now, and Stone has announced that he is suing PayPal over this, claiming that the company “systematically diverts commissions from rightful earners, undermining the affiliate marketing system.”
From his lawsuit:
Adding to the irony, PayPal enlists content creators and influencers to promote the Honey browser extension to their audiences, effectively enabling it to usurp the commissions and other benefits those same creators depend on for income.
Devin Stone, a.k.a. LegleEagle
Speaking to The Verge, a PayPal states that they plan to defend themselves from this suit “vigorously”, and that “Honey follows industry rules and practices, including last-click attribution*”.
*last-click attribution is a system in which the final touchpoint gets all credit for a purchase
Stone released a video on the suit (above), in which he details what he believes to be the crux of the issue. According to his video, not only is the link-swapping a problem, but also the fact that they frequently looped creators into the advertising for the extension to get users to install it. Stone likens it to a “sleeping leech” in users’ browsers, “waiting for the viewer to conduct a transaction.”
And thus, forever after, the creator’s future sponsorships and future affiliate relationships and advertisements were devalued now that the creator’s audience was infected.
Devin Stone, a.k.a. LegleEagle
Stone also notes that he’s seeking class action status for the suit, and is looking for other creators to join in. He provided a link to all of the particulars alongside his video, which you can read over here, or below:
As content creators, we pour our time and energy into our work. Recent developments involving Honey, the savings app, threaten our rights and compensation. It is crucial for us to consider joining the legal action against them.
This case is about asserting our right to control the use of our content and pushing back against unauthorized practices. Honey’s exploitation of promotional codes and links directly affects our earnings. Standing united will guarantee that we get the compensation we deserve.
Winning this legal battle would set a vital precedent that empowers current and future creators while strengthening our community. It will also enhance transparency into how platforms use our work, ensuring that all contributions are valued and respected. Let’s come together to defend our rights and build a fairer environment for all creators. Your voice is powerful, and together, we can create meaningful change.
Source: TechCrunch
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