Microsoft remove coupon feature amid growing legal scrutiny over browser extensions

Microsoft has quietly removed the coupon-finding feature from its Microsoft Shopping browser extension, officially discontinuing it as of May 31. Edge users now see a notification stating: “To simplify our shopping offering, we are discontinuing the Coupons feature in Edge.” Other functionalities, such as Cashback, Price Comparison, and Price History, will remain available.

The company has not provided detailed reasons for the change beyond this message. When pressed for clarification, a Microsoft spokesperson only verified the accuracy of the notice displayed to users.

The move coincides with increasing legal challenges, as multiple content creators filed class action lawsuits earlier this year against Microsoft and other browser extension developers. The lawsuits claim that Microsoft Shopping deliberately overwrites legitimate affiliate cookies from creators during checkout, replacing them with its own tracking codes – allegedly redirecting commissions that should have gone to the original marketers.

One plaintiff, online content provider Boycat, Inc., asserts that while it earned around 1 000 $ in commissions last year, its revenue would have been substantially higher without Microsoft’s alleged interference.

Microsoft’s situation reflects a wider industry backlash sparked by similar accusations against other browser extensions. The controversy gained momentum after YouTuber MegaLag released an exposé in December 2024, revealing how PayPal’s Honey extension purportedly hijacks affiliate revenue by claiming the “last click” and overriding commission-generating cookies.

Following these allegations, Honey faced lawsuits from creators like Legal Eagle and GamersNexus, with parallel claims targeting Microsoft and Capital One’s extensions. Reports indicate that Honey lost approximately 3 million of its 20 million users within two weeks of the scandal.

The coupon extension business model heavily depends on affiliate marketing. Typically, content creators earn commissions when users click their links and make purchases. However, the lawsuits allege that some extensions manipulate affiliate cookies in the background, claiming credit for sales without offering real discounts or value to shoppers (Tom’s Guide).

Microsoft launched its coupon feature in 2020 to help users automatically find discounts at checkout. Its discontinuation comes just before new Chrome Web Store policies, effective June 10, which will impose stricter rules on how extensions earn affiliate commissions. Notably, Microsoft Shopping is no longer available on the Chrome Web Store.

In response to the broader debate, Google announced in March that affiliate links in Chrome extensions must deliver “direct and transparent benefits to users,” specifically cracking down on extensions that allegedly steal commissions without providing deals (The Washington Post).

The lawsuits against Microsoft and others accuse them of unjust enrichment, unfair competition, and conversion. The proposed class action seeks to represent all U.S.-based affiliate marketers who claim their earnings were diverted by these extensions.

It remains uncertain whether Microsoft’s decision to scrap its coupon tool will influence the ongoing legal cases.

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