Capital One has settled a class-action lawsuit with social media creators who alleged the bank’s Shopping browser extension diverted their affiliate marketing commissions through deceptive practices.

As Reuters reports, the sixth-largest U.S. commercial bank and the creators jointly filed a settlement notice on September 18 in the Alexandria, Virginia, federal court. Both parties are expected to submit a settlement for preliminary approval by November 17, according to court documents.

Capital One has not admitted wrongdoing in settling claims over the browser extension and states that consumers will not see changes to the service, which is used by millions to find discounts while shopping online.

ALLEGATIONS OF COMMISSION DIVERSION

The lawsuit centers on affiliate marketing, where creators promote products through specialized links and earn commissions when consumers make purchases through these links.

Creators alleged Capital One Shopping made it appear at checkout as though shoppers made purchases from merchants’ sites after clicking referral links from the bank rather than creators’ original links. This practice allegedly allowed Capital One to collect millions of dollars in commissions that belonged to bloggers, influencers, YouTubers, and other content creators.

In June, U.S. District Judge Anthony Trenga refused to dismiss the case, finding it plausible that Capital One knowingly overrode tracking codes, such as cookies, that showed shoppers had seen the creators’ content.

The case highlights the marketing practice of “last-click attribution,” where the final piece of content a user engages with before purchasing receives credit for the sale.

Capital One acquired the browser extension when it bought online shopping startup Wikibuy in 2018. A Capital One spokesperson noted that evidence in the case showed Capital One Shopping “recognizes and follows industry rules and is aligned with its advertising partners.”

Microsoft and PayPal have faced similar litigation over their Microsoft Shopping and PayPal Honey extensions, indicating broader concerns about browser extensions potentially interfering with affiliate marketing commission structures.

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