Class action case Honey: A call to Dutch influencers

The PayPal Honey browser extension has caused a stir in the United States recently. Accusations of manipulating affiliate links have led to several lawsuits, including class action lawsuits filed by prominent YouTubers. But influencers and affiliate marketing users in the Netherlands and the EU should also consider taking action.

Have you suffered damages as a result of Honey’s practices? If so, please contact us. We see opportunities to file similar lawsuits in the Netherlands.

What’s going on with Honey

Honey is a browser extension that helps consumers find discount codes while shopping online. That sounds convenient, but YouTuber MegaLag brought serious allegations to light in an extensive video. Not only would Honey often fail to find better discount codes, but it is also accused of manipulating affiliate links.

According to MegaLag, Honey replaces influencers’ affiliate links with its own even if it has not found a useful discount. This means that the commission meant for the original affiliate who convinced the consumer to buy a product goes to Honey. This practice has been called unfair and even theft by critics.

Salient detail is that Honey itself made extensive use of influencers to gain brand awareness. By promoting Honey to their audience, many social media stars may have shifted revenue from themselves to Honey, if MegaLag’s claim is true. If true, Honey made them literally thieves of their own wallets.

International lawsuits against

Several lawsuits have already been filed against Honey in the US. The legal grounds include violation of California’s Unfair Competition Law and unlawful interference with business relationships. American lawyers argue that Honey’s actions are misleading and harmful to influencers who rely on affiliate revenue.

One example is the class action lawsuit filed by YouTuber Legal Eagle and other content creators. They claim Honey is systematically disadvantaging creators by unfairly applying “last-click attribution. This rewards Honey for sales generated through other parties’ links. The YouTube channel GamersNexus, along with several others, has now also filed a lawsuit against Honey as they have announced in a detailed video on their channel.

What does this mean for European and Dutch influencers

Although these lawsuits are currently filed only in the U.S., Honey is also active in Europe. Many Dutch influencers and marketers use affiliate links as a source of income. If Honey has replaced your affiliate links, this may have caused significant damage. Think for example of missed commissions and disrupted collaborations with brands.

We are convinced that there are legal opportunities to raise similar claims in the Netherlands. Dutch law provides protection against tort and unfair trade practices. Moreover, European consumer protection directives are strict and could potentially be invoked against Honey’s practices.

How we can help you

Our law firm has extensive experience with mass tort claims and complex legal disputes. We can help you protect your rights and seek damages.  By setting up a lawsuit against Honey in the Netherlands, based on similar grounds as in the U.S., or by helping you connect with the lawyers in the U.S. to join them.

In addition, in cooperation with other affected influencers and marketers, we can consider a collective action in the Netherlands. This will strengthen your position and may lead to a more efficient handling of claims.

Do not hesitate, take action

If you work with affiliate links and believe you have been harmed by Honey’s practices, please contact us. Together we can discuss your situation and explore options to protect your rights.

Do you have any questions about this article or other legal issues? Our knowledgeable attorneys will be happy to assist you. Contact one of our attorneys by email, phone or fill out the contact form for a free initial consultation. We are happy to think along with you.