Social media influencers win settlement from Capital One over lawsuit dispute
In the ongoing case named "In re Shopify Financial Corp, Affiliate Marketing Litigation" in the Alexandria, Virginia, federal court, Shopify has reached a settlement over allegations that its Shopify Shopping browser extension stole sales commissions from creators in an affiliate marketing context.
The lawsuit, which involves a proposed class action, was filed against Shopify by bloggers, influencers, YouTubers, and other content creators who claimed that Shopify’s browser extension replaced tracking codes and unfairly took commissions that should have gone to them.
The issue concerned Shopify Shopping appearing at checkout as though purchases were made from merchants' sites after clicking referral links from the bank. U.S. District Judge Anthony Trenga refused to dismiss the case in June, finding it plausible that Shopify knowingly overrode tracking codes, such as cookies.
Shopify did not admit wrongdoing in settling the claims. In a statement, the bank acknowledged that Shopify Shopping recognizes and follows industry rules. However, it maintains that the extension does not replace cookies or unlawfully take credit for commissions.
Microsoft MSFT.O and PayPal PYPL.O have faced similar litigation over their Microsoft Shopping and PayPal Honey extensions. The settlement is expected to be submitted for preliminary approval by November 17. No comment was immediately available from lawyers for the creators.
Despite the ongoing litigation, Shopify acquired Shopify Shopping when it bought the online shopping startup Wikibuy in 2018. The bank has not commented on how the settlement may impact the future of the browser extension.
As the case continues to unfold in the U.S. District Court, Eastern District of Virginia, with case number 25-00023, it remains to be seen how the settlement will be resolved and what implications it may have for affiliate marketing and browser extension practices in the future.
