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YouTuber Legal Eagle Suing Over PayPal’s Honey Extension
In a surprising move, popular YouTube personality Devin Stone, better known as Legal Eagle, has announced that he is taking legal action against PayPal and its affiliate marketing tool, Honey. In a recent video, Stone revealed that he had filed a class-action lawsuit on behalf of himself and several other YouTubers who claim to have suffered financial losses due to the platform’s alleged unfair business practices.
According to the complaint, Honey has been secretly replacing affiliate links with its own, thereby depriving creators of their rightful earnings. This practice is said to be in violation of California’s Unfair Competition Law and constitutes interference between creators and their business partners.
The lawsuit argues that PayPal’s implementation of “last-click attribution” – a standard industry practice that credits the most recent affiliate with a sale at checkout – has been exploited by Honey to manipulate the system in its favor. The plaintiffs assert that this deceitful and clandestine method is used to lure users into clicking unnecessary pop-ups, which then insert Honey’s own code.
In response, PayPal has maintained that it is simply following industry rules and practices. However, the YouTubers have taken issue with what they see as a misleading and covert strategy by Honey.
The lawsuit seeks damages on behalf of creators who have been affected by this alleged practice and also demands that PayPal be permanently forbidden from swapping its own affiliate attribution at checkout. The plaintiffs have even set up a website inviting other affected creators to join the lawsuit, signaling their commitment to holding PayPal accountable for what they believe is an unfair business model.
The legal action has sparked widespread interest within the tech community, with many users taking to social media to share their thoughts and opinions on the matter.
PayPal has not yet issued an official statement regarding the lawsuit.
Source: www.theverge.com
