Capital One Reaches Settlement with Social Media Creators over Affiliate Marketing Dispute

Capital One has agreed to settle a lawsuit brought by social media creators who alleged that the bank’s browser extension, Capital One Shopping, redirected affiliate marketing commissions meant for influencers, bloggers, and content creators. Filed in federal court in Alexandria, Virginia, the proposed class action claimed that the extension hijacked affiliate tracking links, allowing Capital One to collect millions in commissions that should have gone to the creators.

Though the financial terms of the settlement have not been disclosed, both parties submitted a settlement notice on September 19 and expect to request preliminary court approval by November 17. Capital One did not admit any wrongdoing as part of the settlement. The company maintained that its browser extension complies with industry advertising standards and does not override cookies or affiliate tracking mechanisms.

The dispute centers on affiliate marketing practices, where creators earn commissions when followers purchase products through their shared referral links. The lawsuit claimed Capital One Shopping made it appear that referrals came from the extension, not from the original content creators, thereby diverting revenue. In June, a federal judge declined to dismiss the case, suggesting there was plausible evidence the extension interfered with affiliate tracking tools.

This settlement follows similar cases involving other major tech companies like Microsoft and PayPal, who have faced legal challenges over their own browser extensions, Microsoft Shopping and PayPal Honey. Capital One had acquired its extension in 2018 when it purchased the e-commerce startup Wikibuy. While consumers will not see changes to the browser extension as a result of the settlement, the case may set a precedent for how affiliate attribution is handled in the digital marketing ecosystem.