Klarna Lawsuit Claims Browser Extension Steals Content Creators’ Commission Payments

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class action lawsuit claims Klarna, a browser extension that searches for coupons and discounts on products online shoppers have in their carts, steals sales commissions from content creators who earn money through affiliate marketing.

Get the latest open class action lawsuits sent to your inbox. Sign up for ClassAction.org’s free weekly newsletter.

According to the 31-page case, when a consumer clicks on a content creator’s referral link to a sponsored product and makes a purchase, a tracking tag unique to the influencer ensures they get credit and earn a commission from the sale.

However, unbeknownst to shoppers and content creators, Klarna secretly misappropriates these commission payments by replacing the influencer’s tracking tag with its own during online checkout, the complaint contends. This substitution allows Klarna to wrongfully take credit for commissions it did not earn, the filing charges.

“Importantly, theft of these commissions happens even though the customer accessed the product or service through the Content Creator’s specific affiliate marketing link and was, in every practical sense, referred to the product or service by the affiliate marketer and not by Klarna,” the lawsuit says.

The lawsuit against Klarna was filed by a content creator residing in California who claims to have been systematically cheated out of commission payments by the company.

The suit alleges that Klarna steals sales commissions anytime a shopper activates the extension by clicking one of its pop-ups and even when the tool fails to find any coupons or savings for the consumer.

The case asserts that “Klarna is misappropriating commission payments during millions of online transactions each month by replacing affiliate marketing cookies and marketing tags.”

The lawsuit looks to represent anyone in the United States who participated in an affiliate commission program with a U.S. e-commerce merchant and had commissions diverted to Klarna as a result of the Klarna browser extension.

Want to learn how to start a class action lawsuit? We’ve got you covered.