YouTuber launches class action lawsuit against browser plugin "Honey"
In the USA, there are now several lawsuits against Paypal's shopping extension. Now a creator is also claiming damages.
The "Honey" plugin promises discounts – but often works differently than desired.
(Image: Screnshot heise online)
The YouTube channel Gamers Nexus has filed a class action lawsuit against PayPal together with a law firm. The channel sees itself as a victim of the recently disclosed functionality of the browser plugin "Honey", which is operated by Paypal. Honey is said to not only harm users by not offering them the best discounts when shopping online, as promised. It also harms content creators such as YouTubers by replacing their affiliate links with links from which Paypal in particular earns money – and not the creators.
Obtaining compensation for this is also one of the aims of the lawsuit, as the founder and host of Gamers Nexus, Steve Burke, explains in his new video. However, his main motivation is that such plugins are "bad for consumers". Therefore, if the lawsuit results in payments to his company, he wants to donate at least more than half of the money to organizations such as the US consumer protection group PIRG and the Internet archivists archive.org. Burke has also repeatedly campaigned for consumer protection in the past.
Proceedings could take years
Burke also points out that the proceedings could drag on for years and that he may not be able to say anything about any amounts in the future. The latter is quite common in the case of out-of-court settlements in such civil proceedings for damages in the USA. The parties often enter into confidentiality agreements.
Meanwhile, there are indications that after the matter became known at the end of December, a video from the YouTube channel MegaLag caused several users to uninstall the browser extension, which has a direct impact on the creator's sales. In the latest clip from Gamers Nexus , YouTuber Wendell from Level1Techs describes how his sales from affiliate links have increased exponentially recently.
Allegation: Affiliate investments are being redirected
Affiliate links, probably best known through Amazon, secure a portion of revenue for creators by giving them a share of the sales directly when they buy from an affiliate partner. A central accusation against Honey is that the plugin is supposed to redirect the participations to Honey by replacing the cookies in the browser. The creators should then receive nothing, even though they explicitly advertise products and an online store, for example.
The lawsuit filed by Gamers Nexus is independent of the one recently filed by lawyer and YouTuber LeagalEagle. This is primarily aimed at consumers who believe they have been harmed by Honey.
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