PayPal class action lawsuit overview:
- Who: Plaintiff Claudia Jayne Young filed a lawsuit against Paypal Inc. and PayPal Holdings Inc.
- Why: Young claims PayPal uses its Honey web browser extension to steal influencer commissions from online “influencers” who provide links to products.
- Where: The class action lawsuit was filed in California federal court.
A new class action lawsuit alleges PayPal uses its Honey web browser extension to steal affiliate marketing commissions from online “influencers.”
Plaintiff Claudia Jayne Young’s class action lawsuit claims the Honey extension — which was purchased by PayPal for $4 billion in March 2020 — steals commissions from influencers who provided a link to a merchant that gets a sale from their redirect.
Young, an Instagram content creator, argues Honey replaces the influencer’s “cookie” — a code which identifies who should receive a commission, in this case — with its own when a consumer uses the Honey extension to search for coupons.
“The simple act of clicking a button affiliated with Honey will cause Honey to place its own affiliate marketing cookie in the place of the affiliate marketer cookie that actually led the user to the purchase,” the PayPal class action says.
Young wants to represent a nationwide class and Arkansas subclass of influencers whose affiliate commissions from U.S. e-commerce merchants were diverted to PayPal as a result of the Honey browser extension.
PayPal swoops in to ‘steal the fruits’ of influencers’ labor, class action claims
Young argues PayPal has also created a program called “PayPal Rewards” that will similarly replace an influencer’s cookie with its own — thereby stealing the influencer commissions — in the event the program is activated at checkout.
The lawsuit claims PayPal is ultimately leveraging the work of influencers for its own benefit by “swooping in at checkout to steal the fruits” of their labor.
“PayPal Inc. recognizes the value of those (influencer) cookies. So much so that it steals them,” the PayPal class action says.
Young claims PayPal is guilty of unjust enrichment, conversion and tortious interference with prospective economic advantage, and of violating the Arkansas Deceptive Trade Practices Act, California’s Business And Professions Code §17045 and its Unfair Competition Law.
The plaintiff demands a jury trial and requests declaratory and injunctive relief and an award of actual, statutory, treble, punitive, and consequential damages for herself and all class members.
A pair of consumers filed a separate class action lawsuit against PayPal in March 2023 over claims the company failed to properly safeguard and secure the sensitive personal information of its customers during a December 2022 data breach.
Have you had your influencer commissions stolen by PayPal? Let us know in the comments.
The plaintiff is represented by Brian O’Mara, Amy Keller, Daniel R. Schwartz and James Ulwick of DiCello Levitt LLP
The PayPal class action lawsuit is Young, et al. v. PayPal Inc., et al., Case No. 5:25-cv-00124, in the U.S. District Court for the Northern District of California.
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51 thoughts onPayPal, Honey steal influencer marketing commissions, class action claims
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I opened a paypal business account in 2019 as I was starting a cleaning business. I’m from Louisiana but left everything to start over in Florida. I opened this account in Nov of 2020 in December 2020 I was in a traumatic experience that I’m still recovering from .I can’t recall the date or even how I was involved in the e co.merce account that apparently has revenue that could help me keep a working phone to keep my data updated as I have had several phones get stolen break or frankly just quit working,as if that wasn’t enough because I wasn’t able to keep a stable phone number or a number at all because of just several factors that may or may not be relevant at this time. I called emailed sent identification but for “security reasons ” I could not get no if any information as I couldn’t really recall my email or number at the time of my account opening. Paypal stated to make a new account if unable to gain access to my old one and that I wasn’t able to close all the paypal accountß open in my name bit it was restricted which basically meant it was restricted fpr use except to recieve money and pay customers. Which I had few because I was just beginning to get some kind of establishment of clients. To ghis day I have yet to recieve any “commissions” from paypal or e-commerce. Though I have gained access to my personal account that I believed to have opened in 2018 personal account . Now I have crypto invested from 2018 and still have yet to gain access to my orignal account. I also have statement which list a 7 day period of them denying my incoming transactions . Yet go have a stable phone connection nor place to live and unable to work because off injury I rdcieved so I started winning bitcoin and paypal was holding it but now there is no bal of any kind in my accounts from paypal
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Add me. Affiliate commissions plummeted with the introduction of these dishonest earnings stealing browser extensions that fool consumers into thinking they will get a better deal, even when there isn’t a benefit, and in the process overwrite the original tracking cookies of affiliates, stealinng our legally gained commissions. There actions break the very terms and conditions that influencers and website owners are forced to adhere to, or have their accounts cancelled.
The marketplaces that allow this to happen without penalty to the offending parties are complicit in the theft of the earnings of many honest hard working people and businesses. The owners of these extensions must be brought to heel and comply with the same terms and conditions that all are required to abide by.
Look for a private financial crime investigator .Check out Phillip at forexfraudteam. com
I have first hand experience with PayPal my accounts ……how PayPal has continuously infiltrated there business into my bank, into my delivery packages, into my google account, and many other accounts which there name (PayPal) was not included in the making of the bills I have a multiple of breaching contracts from companies too several financial institutions that will both eyes brows to form one unibrow……HELP …..
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