Capital One must face social media creators' lawsuit alleging stolen commissions
June 3 (Reuters) - Capital One (COF.N), opens new tab must face a lawsuit by social media creators who said the bank's free browser extension stole their sales commissions when consumers bought their products and services.
In a Monday night decision, U.S. District Judge Anthony Trenga in Alexandria, Virginia said creators plausibly alleged that Capital One knew or should have known that it diverted their commissions by overriding tracking codes that showed consumers had seen their content.
The proposed class action involves affiliate marketing, where creators promote content through links that appear on their platforms and social media channels, and are provided by online merchants and third-party marketers.
Creators said the Capital One Shopping browser extension, used by more than 10 million people to find discounts, made it appear at checkout as though consumers made purchases from merchants' sites after clicking referral links from the bank.
They said this let McLean, Virginia-based Capital One collect millions of dollars of commissions that bloggers, influencers, YouTubers and other creators had "rightfully earned".
Trenga said creators can pursue claims that Capital One was unjustly enriched, interfered with their contracts and ability to make money, and violated the federal Computer Fraud and Abuse Act. He dismissed a conversion claim and four state law claims.
Capital One did not immediately respond to requests for comment on Tuesday.
In seeking a dismissal, the bank said it was up to merchants to decide how to allocate commissions.
It also said the lawsuit reflected creators' frustration that merchants "do not always share their view that they did all the work."
Norman Siegel, a lawyer for the creators, said they looked forward to continuing to prosecute their case.
Microsoft (MSFT.O), opens new tab and PayPal (PYPL.O), opens new tab face similar litigation over their Microsoft Shopping and PayPal Honey extensions.
Capital One is the sixth-largest U.S. commercial bank by assets, after buying Discover Financial Services in May.
It acquired its browser extension when it bought online shopping startup Wikibuy in 2018.
The case is In re Capital One Financial Corp, Affiliate Marketing Litigation, U.S. District Court, Eastern District of Virginia, No. 25-00023.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
35 minutes ago
- Reuters
English court bars jailed Russian tycoon from appealing in Transneft case
MOSCOW, June 5 (Reuters) - The English Court of Appeal has refused jailed Russian tycoon Ziyavudin Magomedov permission to appeal against a decision that threw out his $14 billion lawsuit against Russian oil pipeline monopoly Transneft and other firms, the company said. Magomedov sued the company and several others at London's High Court, alleging his 2018 arrest on embezzlement charges prompted a Russian state-supported scheme to strip him of his holdings in valuable port operators. In January, Transneft, as well as U.S. private equity firm TPG (TPG.O), opens new tab and other companies, won their bid to block Magomedov's London lawsuit. Transneft said late on Wednesday that the English Court of Appeal denied Magomedov permission to appeal the ruling. "It is clear from the English process that there are massive losses which Mr Magomedov has suffered as a result of wrongdoing against him. He will continue to seek justice and a fair outcome wherever he can," a spokesperson for Magomedov said. Magomedov once controlled an empire ranging from port logistics to oil and gas through his Summa Group conglomerate, which he founded with his brother Magomed. But the brothers were arrested on embezzlement and organised crime charges in one of the most high-profile prosecutions of its kind in years. Magomedov was sentenced to 19 years in jail in 2022. He says the charges against him are unfounded and unsuccessfully appealed against his conviction.
Daily Mail
35 minutes ago
- Daily Mail
Kim Zolciak's daughter Ariana claims her mom and stepdad Kroy Biermann spent all her money
daughter Ariana Biermann has claimed her mother and stepfather Kroy Biermann have spent all of her hard-earned money. The influencer, 23, made the claim on the first episode of her new Bravo reality TV show Next Gen NYC on Tuesday. She said she started making significant income from brand deals and sponsored social media posts aged as young as 14, but claimed her parents wiped it out. 'I was doing like three posts a week and you get paid astronomical to do a story or to do an Instagram post, and I made quite a bit of money,' she said. 'But, unfortunately, my parents took my money.' Since filing to end their nearly 12-year marriage in May 2023, Kim and Kroy have been embroiled in a nasty legal battle over their Georgia mansion, custody of their four minor children, and financial support—with Kroy previously accusing Kim of gambling away $1.5 million. But now Ariana is adding fuel to the fire, saying she discovered her money was 'gone two years ago.' She added: 'I don't even know how much money I made over the time period,' the reality star admitted. 'Nobody was honest, there was no transparency and I have no idea where it actually went.' She added that she 'can't say exactly' what her parents spent it on. Ariana also revealed the ongoing family drama has taken a toll on her relationship with boyfriend Hudson McLeroy, especially when when her mom reaches out for financial help. She admitted in a confessional: 'Sometimes I don't tell Hudson when she's asking me for something because she' going through this crazy divorce and living with four kids. 'I get it and I never want money to destroy the relationship with my family.' Money woes have loomed large over Kim and Kroy's unraveling marriage. After filing for divorce, Kroy accused the reality TV star of a severe gambling problem that he claimed left their family in financial ruin. According to court filings, he alleged Kim blew through more than $600,000 on luxury shopping sprees over a seven-year span, frequenting high-end retailers like Neiman Marcus, Chanel, and Saks. The financial pressure only escalated when their Georgia mansion—once listed at a far higher price—lingered on the market for over 18 months. In February, the troubled property finally sold, but at a steep $3 million discount, following months of foreclosure threats. Ariana's claim comes almost a week after Kim faced fresh backlash after promoting an online casino — despite ongoing claims that her gambling habit helped tank her family's finances. The accusations about Kim's gambling losses were seen in a 2023 Milton Police Department bodycam video after officers responded to the home after Kim reported a domestic dispute. During the police visit, Kroy told police that the Don't Be Tardy alum 'has decimated everything' with her penchant for gambling; he added that some of her gaming activity was illegal. Zolciak and Biermann's four kids - Kroy Jr., 15, Kash, 14, and twins Kane and Kaia, 12 - were at home at the time of the altercation. (Biermann had adopted Zolciak's older children from previous relationships - Brielle, 28, and Ariana - when they were minors in the couple's earlier years.) Ariana's bombshell financial claim also comes after she finally received her sentencing following her 2022 DUI arrest. The media personality was involved in a 'minor fender bender' at the time - but denied that she had been drinking leading up to the incident. However, she admitted to using a marijuana vape the night before. A hearing recently took place on May 23 amid her criminal case and she entered a plea deal - with charges officially being dropped, according to InTouch Weekly, which was the first to report the news. She pleaded guilty to both reckless driving as well as possession and use of a drug-related object. However, the star will have to serve 24 months on probation and if she commits any violations, Ariana could possibly serve time in jail.
Daily Mail
36 minutes ago
- Daily Mail
Dr Martens returns to growth as bootmaker pledges to stamp out costs
Dr Martens shares soared more than 20 per cent on Thursday after the iconic bootmaker revealed it expects to return to profit this year. The retailer, which has struggled for momentum over the last two years, outlined plans to cut costs and scale back discounting in its key markets, including the US and Europe. Dr Martens revealed an annual profit slump as sales came under pressure and it cautioned over ongoing falling revenues in Britain. The footwear group reported pre-tax profits of £8.8million for the year to 30 March, down from £93million the previous year, after seeing sales fall 10 per cent. On an underlying basis, the group's pre-tax profits fell sharply to £34.1million from £97.2million. The company said sales to consumers in the US returned to growth in the second half of the year and had continued to increase, but revealed revenues had remained lower since the year-end 'due to a challenging market'. It added that unfavourable foreign exchange rates would see it take a hit to group sales and profits of around £18million and £3million respectively this year. However, Dr Martens said it expects its underlying profit to rise 'significantly' over the financial year ahead, with analysts expecting a jump to between £54million and £74million. Dr Martens shares rose 21.77 per cent or 13.05p to 73.00p on Thursday, having fallen over 13 per cent in the last year. On curbing discounts, the group said: 'As we look forward into FY26, we will reduce discounting in Americas and EMEA, across both our own ecommerce channel and through wholesale, with the aim of driving full price sales.' The group flagged uncertainty over the impact of higher tariffs, but said it was holding off from price rises for the the remainder of 2025. Its stock is already in the US market for the spring and summer season and either there or on its way for the autumn and winter months. Dr Martens said: 'We do however recognise that there is continued macroeconomic uncertainty and the full outcome of tariffs is still unknown, and we will monitor this closely through the year and take action as appropriate.' The Northamptonshire-based company outlined new plans for growth alongside its results, with aims to attract new shoppers and hold off from discounts in EMEA and the Americas. Annual figures showed sales sales fell 11.4 per cent over the year, although retail lifted 1 per cent in the final six months of the period. In the Europe, Middle East and Africa (EMEA) region, sales fell 11 per cent, with direct-to-consumer difficulty amid a highly promotional market, particularly in Britain, the group said. The company, whose yellow-stitched boots have been a retro mainstay for decades, has been in the doldrums in recent years, with declining revenues exacerbated by the cost-of-living crisis. It listed on the London Stock Exchange in 2021, and has since issued a slew of profit warnings and replaced its chief executive. Many of Dr Martens' recent problems have come from steep declines in sales in the US, but new chief executive Ije Nwokorie said the group had stabilised in the past year. He said: 'Our single focus in 2024-25 was to bring stability back to Dr Martens. 'We have achieved this by returning our direct-to-consumer channel in the Americas back to growth, resetting our marketing approach to focus relentlessly on our products, delivering cost savings and significantly strengthening our balance sheet.' Nwokorie, previously the firm's head of marketing before taking on the top job from Kenny Wilson on 6 January, said: 'I am laser-focused on day-to-day execution, managing costs and maintaining our operational discipline while we navigate the current macroeconomic uncertainties.' Russ Mould, investment director at AJ Bell, said: 'Dr Martens is on the front foot with a strategy that seeks to kick out the troubles of old and return the business to profitable growth. 'This should shift the market's focus from earlier problems in the US and a sharp drop in earnings to a business intent on regaining its power. 'Having a plan is a good start, but the proof will be in the execution. It has laid out ambitions to get back on top. Turning those dreams into reality might not be easy. 'Fundamentally, it's all down to marketing and product innovation. Dr Martens needs to convince the consumer they need its products – get that right, and it could reclaim its crown in the footwear market. 'The brand still has considerable strength, the business just needs to be more creative at the front end and agile at the back end.'
