🍯 Influencers vs. Honey
Two class-action lawsuits have been filed against PayPal by content creators. The cases allege that the Honey browser extension takes credit for online sales without driving them, costing influencers affiliate revenue. Honey, known for finding coupons, allegedly claims the "last click," overriding content creators' referrals. Devin Stone, a YouTube creator and counsel for a plaintiff, said Honey misrepresents its role in sales referrals. Honey denies the claims, stating it follows standard "last-click attribution" rules.
🛒 Affiliate Marketing’s Rules
Affiliate marketing generates 20% of U.S. e-commerce revenue, Adobe Analytics reports. The “last-click attribution” model gives commission to the final referrer before a purchase. Honey, integrated as a browser extension, often gets this last click. Critics argue that Honey takes credit even when no coupon is found. Legal experts like Robert Freund believe proving illegality may be tough, as the model itself isn’t unlawful. “It’s a challenging case,” Freund noted, though creators see the practice as unfair.
🤝 Creator Backlash Intensifies
Honey, heavily reliant on influencer marketing, risks losing creator support. Prominent YouTubers like Marques Brownlee and Hank Green criticized Honey’s practices after MegaLag posted a viral exposé. Creators fear losing commissions while promoting a tool they believe undermines their efforts. Honey says it helps merchants by reducing abandoned carts and benefiting shoppers with savings, but the backlash may hurt its credibility with influencers, a key marketing channel.
⚖️ What’s Next for PayPal?
The lawsuits, filed in Northern California, seek damages and changes to Honey’s affiliate practices. If certified as class-action, more creators may join, amplifying pressure on PayPal. While legal hurdles for plaintiffs remain, the lawsuits spotlight tensions in affiliate marketing. Even if Honey prevails, PayPal might need to tweak its approach to rebuild trust with creators. The outcome could redefine industry norms for referral commissions and last-click attribution.
Should affiliate marketing rules be revised to protect creators?
