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this post was submitted on 06 Jan 2025
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Honey has in its terms of services that you accept not to take part in a class action lawsuit and favor arbitration. It seems like these kind of clause is enforceable usually so I'm curious to see how Legal Eagle will navigate the issue.
Edit: Either the creators sue Honey and they will argue it is not illegal to poach affiliate links because they follow the "last click" rule that is standard (it's just that they pushed it to the extreme).
Or its the users that are scammed because they were told the best coupon would be used. But if it's the users, they are under the EULA and should have to comply with the no class action rule.
I'm not a lawyer but this is how I understand the setup for this trial to be.
In this case the class action would be youtubers and other content creators not users of Honey.
Then it remains to be proven that it is illegal to poach affiliate links like that. Because Honey says they just follow strictly the "last click" rule that is common practice in the field.
It's bullshit but if that bullshit rule is indeed the standard practice then it will be hard to fight.
Could it not be seen as a deliberate deceit to avoid adequate compensation as per any sponsorship agreement though? Such practice can't be legal surely?
Even if they tried to weasel it into the terms of a sponsorship agreement one would assume it would be considered null as it goes against the very purpose of the contract?
Feel like Legal Eagle wouldn't waste their time and resources on a class action if they didn't have strong enough grounds for a fight? (And would instead make a video explaining why it would be pointless to do so)
Technically, there is not necessarily a partnership in a situation where an affiliate link was stolen. Any user with the extension would see his affiliation given to PayPal.
Also, I can't help but think it will be very difficult to account for how much money was "redirected" by Honey. The creator would need data from YouTube that I don't think is logged for much time. So you wouldn't know who clicked and when and even after that I thing the vendor of the product would need to be involved also.
Who knows what LegalEagle intends to do, they shouldn't be too clear on their intent and keep their strategy secret. Maybe they hope for some kind of settlement because I think this is more damaging in term of PR than it will ever be in terms of fines. It's like the recent case of Apple, they choosed to pay to expedite the process but never admitted guilt?
Again I'm no lawyer let's trust Legal Eagle and see where it goes. But PayPal will be a strong case for sure.