YouTuber GamersNexus has launched legal action against Honey and its parent entity, PayPal, regarding claims of an **affiliate commission scam**.
On Tuesday, GamersNexus published a [YouTube video](https://www.youtube.com/watch?v=IKbFBgNuEOU&ab_channel=GamersNexus) disclosing the lawsuit, which charges Honey with engaging in misleading business conduct. As per the legal [complaint](https://www.cpmlegal.com/assets/htmldocuments/GamersNexus%20v.%20Paypal.pdf), submitted by the consumer protection law firm Cotchett, Pitre, and McCarthy, Honey is accused of “manipulating last-click attribution to hijack affiliate commissions” from content creators.
This lawsuit follows an investigation conducted in December by another YouTuber, [MegaLag](https://www.youtube.com/watch?v=vc4yL3YTwWk&ab_channel=MegaLag), who revealed Honey’s purported scheme. Honey, a browser extension that automatically applies discount codes during checkout, was alleged to replace affiliate tracking cookies with its own just before customers complete a purchase. This tactic, termed last-click attribution, ensures that Honey garners the referral credit rather than the original affiliate, like the YouTuber who directed the customer.
Honey, which collaborates with popular YouTubers such as GamersNexus to endorse its service, allegedly encourages users to click its browser popup to look for coupons at checkout. However, MegaLag’s inquiry uncovered that this action overwrites the affiliate cookies of the YouTubers who promoted the service, depriving them of their legitimate commissions.
GamersNexus is spearheading a class-action lawsuit submitted on January 3, representing individuals allegedly affected by these actions. Steve Burke, the founder of GamersNexus, asserted that the lawsuit intends to tackle “anti-consumer behaviors that harm not just reviewers but also consumers directly.” Burke also committed to donating any financial gains from the case, whether through a court ruling or settlement, to consumer rights organizations like Public Interest Research Group (PIRG) and Archive.org.
Moreover, LegalEagle, another notable YouTube channel, has initiated its own lawsuit against Honey. In a [statement](https://eagleteam.law/honeycase/) regarding the case, LegalEagle highlighted the necessity of safeguarding creators’ rights: “This case is about asserting our right to control the use of our content and countering unauthorized practices. Honey’s manipulation of promotional codes and links adversely impacts our revenue.”
While the lawsuits from GamersNexus and LegalEagle are currently distinct, Burke noted that there is a possibility for the two cases to consolidate in the future.
This legal confrontation underscores rising concerns regarding how browser extensions and other digital tools might exploit affiliate marketing systems, potentially jeopardizing the earnings of content creators and reviewers who depend on these schemes.