PayPal is facing mounting criticism over allegations that its popular coupon-finding browser extension, Honey, essentially steals from content creators and affiliate marketers by exploiting last-click attribution. Influencers and content creators claim Honey manipulates affiliate links during consumers’ online purchases, redirecting commissions intended for creators to its own accounts. This practice, known as "last-click attribution," has sparked outrage among influencers and other content creators, who argue that Honey's actions effectively steal earnings tied to their promotional efforts.
If you are an influencer or content creator, you understand the importance of affiliate links. You also understand the amount of time and effort it takes to promote a product. If the allegations against Honey are true, it means that Honey swoops in at the last moment to capture earnings that should have gone into your pocket. As upsetting as this is, you may have a remedy. A consumer fraud lawyer can help you learn more about your rights and discuss your legal options related to Honey’s affiliate link practices. Learn more from our recent piece on the topic here.
What Are Affiliate Links?
Affiliate links are a key component of affiliate marketing, where businesses collaborate with individuals or organizations to promote their products or services. When an affiliate, such as a blogger, influencer, or website owner, agrees to promote a product, they are provided with a unique affiliate link by the business. This link tracks the affiliate’s referrals and identifies which sales or actions originate from their promotions.
When a user clicks on an affiliate link, they are directed to the business's website, where their activity is tracked using cookies or other tracking mechanisms. If the user completes a specified action—such as making a purchase, signing up for a service, or downloading an app—the affiliate earns a commission.
What Are the Concerns Over Honey’s Affiliate Link Practice?
Concerns about Honey’s affiliate link practices stem from allegations that it unfairly disrupts the earnings of those who rely on affiliate marketing. Honey, a coupon-finding browser extension owned by PayPal, is accused of replacing original affiliate links with its own during online purchases. This tactic, called “last-click attribution,” redirects commission payments to Honey, even when other affiliates played a key role in driving the sale.
This has sparked frustration among those who invest time and resources into creating content that promotes products, only to see their efforts diminished. Honey’s practice of prompting users to activate the extension at checkout ensures it claims credit for the final step in the transaction, even if others provided the original referral.
Does Honey Admit to Hijacking Affiliate Links?
While Honey doesn’t admit to “hijacking” affiliate links, the company does not dispute that it does obtain referral revenue when consumers activate the plug-in at checkout. Honey’s critics argue that this amounts to exploitation of the “last-click attribution” concept because Honey prompts users to activate it at checkout, ensuring it secures the last click and the associated commission. The argument is that this practice undermines content creators’ and influencers’ marketing efforts, effectively diverting earnings without proper acknowledgment or compensation.
Do Influencers Have a Consumer Fraud Case Against Honey?
Influencers could potentially have a consumer fraud case against Honey if they can demonstrate that Honey’s affiliate link practices mislead users or unfairly harm influencers’ and content creators’ ability to earn commissions through affiliate marketing. Consumer fraud laws generally prohibit deceptive or unfair business practices, and Honey’s alleged manipulation of affiliate links might fall under this category.
For instance, if Honey replaces an influencer's affiliate link with its own without informing the user, it could be argued that the platform is engaging in deceptive conduct. Users may believe their purchase supports the influencer who referred them, when in reality, Honey intercepts the commission. This apparent lack of transparency may form the basis of a consumer fraud claim.
