Capital One has reached a settlement in a lawsuit filed by social media creators who claimed the bank’s browser extension, Capital One Shopping, diverted commissions that were rightfully theirs.
The settlement notice was filed on Thursday in the Alexandria, Virginia, federal court, with preliminary approval expected by November 17.
The plaintiffs alleged that Capital One Shopping hijacked affiliate commissions, intercepting the user journey at checkout. This, they argued, allowed Capital One to collect millions in commissions that would have gone to the creators.
Capital One did not admit to any accusations of wrongdoing and emphasised that consumers would not see any changes. A spokesperson stressed that Capital One Shopping "recognises and follows industry rules and is aligned with its advertising partners."
They added that the platform does not replace cookies or unlawfully take credit for commissions.
The wider picture
The settlement arrives after a several-month-long tussling of ethics in affiliate marketing. Since PayPal Honey was accused of doing the same thing towards the end of last year, pretty much every affiliate browser extension has faced similar accusations.
Hello Partner cannot comment on the technical processes for each of these platforms, but what has become clear is that last-click attribution brings several problems to a contemporary affiliate landscape.
As programmes evolve into more multi-touchpoint, full-funnel journeys, advertisers should consider how each partner can be rewarded. Splitting commissions can feel inconvenient to merchants, but it also helps to strengthen relationships between partners. Perhaps hybrid models should be implemented, involving flat fees and CPA, and, at the very least, clear and transparent explanations of how commission is attributed, if the programme is strictly last-click.
In a recent interview with Hello partner, CJ CEO Santi Pierini explained that even though the tools to split commissions exist, there is resistance from advertisers to using them. “Most companies aren't ready to adopt alternative payment models," he said.
It’s a conversation that will continue to remain important as we creep towards 2026.
