If a compromise can’t be reached via an industry-wide proposal, or through the court system, maybe an edict from the powerful owner of the world’s largest web browser will do it.
Google has introduced a new policy for browser extensions that appears to be aimed directly at the current business models of several coupon code finders, which are currently being challenged in court by dozens of online influencers.
The new Chrome Web Store rules state that affiliate links “must only be included when the extension provides a direct and transparent user benefit related to the extension’s core functionality.” Violations include injecting affiliate links “without related user action” and “when no discount, cashback, or donation is provided.”
In other words, browser extensions that promise to search for online coupons can only claim an affiliate commission for your purchase if you actively click on their coupon code finder – and if they actually find you a working coupon or some other tangible benefit or reward.
The way that coupon browser extensions claim sales commissions is the focus of more than 60 federal lawsuits filed in recent months against Honey, Capital One Shopping, RetailMeNot, Rakuten, Microsoft Shopping and Klarna. Most are modeled after the very first, in which several online influencers accused PayPal-owned Honey of stealing sales commissions from them when they recommend a product with an affiliate link. When shoppers click on that link and make a purchase, the recommender earns a commission for encouraging the sale. But when shoppers click on a pop-up from a coupon browser extension, the owner of that browser extension is then credited with any sales commission, even if it didn’t find any coupons. The lawsuits call this “predatory and unfair conduct” that’s costing the plaintiffs commissions they say are rightfully theirs.
None of the accused have yet offered a detailed defense of their business models. Many do offer rewards, such as points that can be collected and redeemed for gift cards, if they can’t find you a working coupon. It’s unclear, though, if that’s enough to meet Google’s new standards, which state that coupon browser extensions “must not insert an affiliate link if no coupon or discount is found.” It makes no mention of points or other types of rewards that it may or may not consider a “direct benefit for the user at that moment.”
A coupon code finder not named in any of the lawsuits recently suggested an industry-wide compromise in which only the original recommender would get credit for a sale or, perhaps, the original referrer and the coupon finder could share in any sales commission. No one has taken them up on it yet. But Google’s policy update may force some coupon code finders to make changes regardless of how the legal disputes turn out.
“Developers should review their extensions to ensure compliance with the updated policy” by June 10th, when enforcement begins, Google explains. Browser extension publishers participating in affiliate programs must ensure this is “clearly disclosed on the Chrome Web Store listing.” They cannot claim an affiliate commission if the browser extension merely runs in the background – a user must actively engage with it first. And the extension must provide “a direct benefit for the user at that moment,” such as an active, working coupon code.
“Extensions found in violation may be subject to removal from the Chrome Web Store,” Google warns, which is tantamount to an outright ban, since Chrome is the world’s dominant web browser.
This would not be the first time Google has thrown its weight around when it comes to regulating how coupons are offered to you online. Last year, it cracked down on publishers it said were manipulating Google search rankings by offering coupons unrelated to their sites’ editorial focus. News publishers had been using coupon recommendations as an additional revenue source, but Google called the practice “spam” unless the offers were featured on dedicated coupon sites.
Its latest update, Google says, “helps maintain a healthy web ecosystem by ensuring that affiliate monetization is aligned with user benefit. Users should always be in control of their browsing experience and understand how extensions interact with the websites they visit. By enforcing these requirements, we aim to protect users from deceptive practices while allowing high-quality, value-driven extensions to thrive.”
It may not matter much to you who gets credit for persuading you to make an online purchase. But it’s a big business – and everyone involved in finding you the best deals, wants to make sure they’re getting the best value from it as well.
Image source: Honey
