GamersNexus is the latest YouTube channel to file a class action lawsuit against PayPal and Honey

GamersNexus is a prominent YouTube channel and website dedicated to in-depth reviews and analysis of PC hardware, gaming components, and industry news. Recently, the YouTuber fell in line with some of his fellow content creators, including LegalEagle, and filed a class-action lawsuit against Honey and its parent company, PayPal. In a recent video, the rationale behind the lawsuit was revealed.

For those out of the loop, PayPal's Honey browser extension, widely known for automatically applying discount coupons during online shopping, has recently come under scrutiny following allegations of unethical practices. YouTuber MegaLag released a video accusing Honey of "stealing money from influencers" by manipulating affiliate marketing links.

Essentially, GamersNexus' lawsuit files a claim against PayPal under three counts:

"We're suing Honey for three things. One, conversion, two is tortious interference with contractual relations, and three is unfair and deceptive trade practices."

Before this, prominent lawyer and YouTuber Devin "LegalEagle" Stone filed a lawsuit alleging that Honey replaces affiliate links set by content creators with its own, diverting commission earnings from the original creators to itself. This practice, known as "last-click attribution," is claimed to deprive creators of rightful revenue.

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A look at GamersNexus class action lawsuit against PayPal and Honey

GamerNexus' lawsuit centers on claims that Honey's browser extension replaces existing affiliate tracking cookies with its own during user transactions. This practice allegedly allows Honey to receive commission fees that would otherwise go to content creators who originally referred the customers.

GamersNexus also confirmed that LegalEagle's lawsuit being filed around the same time was pure coincidence and the two suits "may get combined" later on:

"Multiple complaints have been filed including one by YouTuber LegalEagle and to be clear our lawsuit is a completely separate filing, we're not joining theirs, we filed our own. We must have been working on this around the same time. As for what happens, they may get combined."

In response to these allegations, PayPal has stated that Honey adheres to industry standards, including last-click attribution. However, critics argue that such practices undermine the revenue streams of content creators who rely on affiliate marketing commissions.

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In other news, Linus Sebastian of LinusTechTips declined to join LegalEagle's class action lawsuit against Honey, stating he is not "particularly litigious."