Capital One Shopping faces class action lawsuit for Honey-like practices
A recent class action lawsuit has been filed against Capital One Shopping, a browser extension owned by credit card company Capital One. This lawsuit alleges that Capital One Shopping has engaged in deceptive practices that harm content creators by replacing their affiliate links with their own at the last minute before checkout, resulting in the loss of commissions for creators.
The lawsuit was filed on January 23 in the United States District Court for the Eastern District of Virginia. It claims that Capital One Shopping, which boasts approximately 10 million subscribers, has been using its user base to commit a significant scam against content creators. While promoting itself as a tool that helps consumers find coupons and save money, the lawsuit asserts that Capital One Shopping also covertly diverts commissions from creators by replacing their information with its own in tracking cookies.
Two prominent YouTubers, Edgar Oganesyan and Matthew Ely, are the lead plaintiffs in the case. They both allege a decline in revenue from affiliate earnings despite an increase in viewership and engagement. The lawsuit seeks to hold Capital One accountable for exploiting creators’ hard work and ensuring that affected creators receive the compensation they deserve.
According to the filing attorneys, the alleged practices of Capital One Shopping amount to consumer abuse on a national scale. The lawsuit, similar to the one filed against Honey, aims to secure financial compensation for creators who have been impacted by these deceptive practices. If successful, creators may receive multiple payouts to offset some of the income they have lost over the years.
Beyond seeking financial redress for affected creators, these lawsuits are also shedding light on the affiliate marketing industry’s structure. By highlighting the unfair treatment of creators in terms of compensation and credit for sales, these legal actions may prompt a reevaluation of industry practices. If coupon-finding browser extensions like Honey and Capital One Shopping continue to erode creators’ earnings by replacing their affiliate links, it not only impacts their income but also distorts data on creators’ sales effectiveness.
Legal experts suggest that other coupon-finding extensions, such as Karma and Pie, could also face similar legal challenges in the future. Creators are advised to monitor the progress of these lawsuits and consider participating in class action settlements if applicable. By standing up for their rights and demanding fair compensation, creators can help protect their hard-earned income and ensure they are properly credited for their marketing efforts.
