YouTubers are suing PayPal/Honey, aiming to take the company down
A Class Action Lawsuit has been filed against PayPal, and it aims to kill coupon app thievery
Following the YouTuber MegaLag’s expose of the “Honey Scam,” a class action lawsuit has been filed against Honey’s parent company, PayPal. This class action Lawsuit already includes prominent YouTube creators, like Wendover Productions, with the YouTuber Legal Eagle (a Lawyer with over 3 million YouTube subscribers) being involved with the case.
If you have ever watched YouTube, you probably have heard of Honey. Honey, now PayPal Honey, is a browser extension that claims to scan the web for the best coupon codes for purchases. In theory, this allows users to get the best deals online, saving them money. The app is well known for sponsoring many popular YouTubers, including Mr Beast, Linus Tech Tips, and Mark Rober.
During his investigation, MegaLag found that Honey was ripping off its users and YouTubers who promoted the app. The app was found to steal affiliate sales from all content creators, denying them the income they deserve. Furthermore, with partnered websites, the app would not find the best coupons for users but claims to have done so. This would let customers think they are getting the best deal and earn partners more revenue. This goes against Honey’s very purpose by giving users sub-optimal deals.
Why file a lawsuit against Honey?
In the YouTube video below, Legal Eagle describes Honey’s business practices as “insidious.” It is claimed that Honey may have stolen billions of dollars from creators through sniped affiliate sales. This undermines the “creator economy” by lowering affiliate income and devaluing all potential affiliate relationships and advertisements.
The class action lawsuit against PayPal/Honey aims to create a legal precedent that empowers creators and destroys the theft-fueled business model of coupon apps like Honey. Creators who feel they were wronged by Honey can join the class action lawsuit here. Below is what the Eagle Team have to say about the lawsuit.
As content creators, we pour our time and energy into our work. Recent developments involving Honey, the savings app, threaten our rights and compensation, making it crucial for us to consider joining the legal action against them.
This case is about asserting our right to control the use of our content and pushing back against unauthorized practices. Honey’s exploitation of promotional codes and links directly affects our earnings, and standing united will ensure that we receive the compensation we deserve.
Winning this legal battle would establish a vital precedent that empowers current and future creators while strengthening our community. It also enhances transparency in how platforms use our work, ensuring that all contributions are valued and respected. Let’s come together to defend our rights and build a fairer environment for all creators. Your voice is powerful, and together, we can create meaningful change.
This Lawsuit will impact all coupon extensions
If this lawsuit is successful, it will prevent Honey and other coupon apps from stealing affiliate revenue from creators. While this lawsuit will take a long time to be completed, one of the primary aims of the lawsuit is to stop Honey’s practices with an injunction. However, the outcome of this lawsuit is far from clear. If PayPal/Honey’s victorious, their “insidious” practices will not end.
You can join the discussion on Honey’s class action lawsuit on the OC3D Forums.
