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PayPal is being sued by YouTuber LegalEagle for “sleeping leech.” Extension of honey

According to a recent complaint, the browser plugin Honey, which is owned by PayPal, is defrauding its creators of their money.

As customers shop, Honey—which PayPal purchased for $4 billion in 2019—automatically displays pertinent coupon codes. However, YouTuber MegaLag called Honey a “scam” that is “stealing money from influencers” in a video that was uploaded last month.

Among other charges, MegaLag claimed that if a YouTuber or other creator uses an affiliate link to promote a product, the extension will covertly replace the viewer’s link with its own when the viewer makes a purchase, even if Honey didn’t offer any discounts. This indicates that the affiliate revenue from the sale goes to Honey rather than the creator. 

Devin Stone, a lawyer from Washington, D.C., who makes videos for his well-known LegalEagle YouTube channel, has now sued PayPal, alleging that the business 

“systematically diverts commissions from rightful earners, undermining the affiliate marketing system.”

Stone said in 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,”.

They have reached out to PayPal for comment. The company shared a statement with The Verge saying it disputes the allegations and will defend itself “vigorously,” and adding that “Honey follows industry rules and practices, including last-click attribution” (an advertising attribution system where the final touchpoint gets all the credit for a purchase).

Naturally, Stone also released a video regarding the case that highlighted Honey’s marketing initiatives, wherein producers encouraged their audiences to install the browser extension.

Stone also added “sleeping leech” in their browsers, “waiting for the viewer to conduct a transaction.”

He also added “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,”.

In addition, Stone stated that he is searching for additional creators to join the complaint and is requesting class action status.

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Avijit Sah

Avijit Sah is a digital marketing expert specializing in SEO, social media, and content strategy. With a passion for helping businesses grow online, Avijit Sah uses data-driven tactics to boost visibility and engagement. Follow Avijit for the latest digital marketing tips and insights.

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