A class-action lawsuit alleges that PayPal's Honey browser extension uses 'deceitful and clandestine' methods to divert millions of dollars in creator commissions.
Online influencers who make money off promoting products online are getting played by one of Silicon Valley’s iconic technology companies, a new lawsuit claims. Tech influencer Marques Brownlee, who has almost 20 million subscribers on YouTube, said the lawsuit alleges that PayPal uses “deceitful and clandestine” methods to steal money from social media influencers and other creators of online content. The class-action lawsuit filed Thursday in San Jose U.S.
District Court by five online-content companies representing influencers alleged that thousands of content creators have allegedly fallen victim to what the lawsuit described as “fraudulent business practices” involving the diversion of millions of dollars in creators’ commissions to PayPal. At issue is PayPal’s free Honey internet-search browser extension that the company claims will scour the web for the best discount coupons and apply them to online purchases. PayPal, when contacted by this news organization, did not answer detailed questions Friday but said in a statement that it disputed the lawsuit’s claims. “Honey is free to use and provides millions of shoppers with additional savings on their purchases whenever possible,” PayPal said. “Honey follows industry rules and practices.” Evidence presented that led to the lawsuit shows a series of high-profile social media influencers — including MrBeast, arguably the world’s biggest influencer celebrity — hyping Honey online to millions of viewers with statements such as, “Honey will find every working code on the internet and apply the best one to your cart.
Paypal Honey Influencers Lawsuit Fraud
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