On March 11, 2025, a class action complaint was filed in United States District Court, Northern District of California, against Rakuten USA, Inc. and Ebates Performance Marketing, Inc., d/b/a Rakuten Rewards (collectively, “Rakuten”).
Affiliate Marketer Referral Fees & Rakuten’s Alleged Replacement of Tracking Cookies
Affiliate marketing, according to the complaint, involves content creators, influencers, bloggers, and other marketers earning referral fees by promoting products and directing traffic via affiliate links.
Affiliate links contain unique tracking cookies or “tags” that identify the Affiliate Marketer as the source of the referral. Tracking tags and affiliate marketing cookies are relied upon by online retailers to determine who gets credit for and referral fees from online referrals and product sales.
When a consumer uses an affiliate link and then activates the Rakuten Browser Extension to find and apply discount coupons, Rakuten, allegedly, replaces the Affiliate Marketer’s tracking cookie with its own. As a result, Rakuten “effectively tak[es] credit for and steal[s] any resulting fee from the sale.”
Alleged Cookie Manipulation & Last-Click Attribution
The widely-used, free Rakuten Browser Extension searches for and applies coupons while consumers shop online. At a consumer’s online shopping cart, the consumer is prompted to apply any coupons Rakuten finds.
When the browser extension is activated during checkout, Rakuten, according to the complaint, replaces tracking tags indicating Affiliate Marketers as the referral source with Rakuten’s own tracking tags. Thus, Rakuten, by manipulating the tracking tag, ensures the Affiliate Marketer referral fee for the purchase is redirected to Rakuten, even if the original referral source was an Affiliate Marketer’s link.
Rakuten, allegedly, has used the Rakuten Browser Extension to “manipulate users’ network transmissions to allow Rakuten to take credit for referral fees it did not earn.” Further, by replacing cookies, Rakuten simulates a new referral and ensures that it receives last-click attribution, a standard industry practice for crediting referrals.
Impact on Affiliate Marketers
As a result of Rakuten’s alleged conduct, Affiliate Marketers not only lose out on referral fees they rightfully earned but also can cause Affiliate Marketers to appear as underperforming to their Merchant Partners, potentially jeopardizing future contracts, better business terms, and business relationships.
Affiliate Marketers Concerned About Referral Fees May Have Legal Claims
Affiliate Marketers who are concerned about their referral fees are encouraged to send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation evaluation of potential legal claims.
About Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.
KLF’s class action legal services are on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.
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