Capital One Faces Lawsuit Over Alleged Influencer Commission Theft

Capital One Financial is facing a significant class-action lawsuit brought by social media creators who allege that the bank's Capital One Shopping browser extension diverted commissions earned through affiliate marketing by overriding tracking codes. The lawsuit claims that this practice allowed Capital One to collect millions of dollars in commissions that rightfully belonged to influencers, bloggers, and YouTubers. U.S. District Judge Anthony Trenga ruled that the creators have plausible claims of unjust enrichment, interference with contracts, and violations of the federal Computer Fraud and Abuse Act, allowing the case to proceed. Capital One denies the allegations, arguing that merchants decide commission allocations and that the lawsuit stems from creators' frustrations with merchants. Similar legal challenges are also faced by Microsoft and PayPal over their shopping extensions. Despite these legal issues, analysts maintain a positive outlook on Capital One's financial prospects, with an average stock price target suggesting potential growth.