A controversial browser extension, acquired by PayPal in 2020 for a staggering $4.000 billion , is under public scrutiny after being accused of deceiving both online shoppers and the influencers who helped popularize it. The tool in question, Honey, was widely promoted as a service that saves users money by finding and applying discount codes. However, recent investigations have uncovered allegedly fraudulent practices that have sparked outrage on social media and in the news.
The scandal began to gain notoriety thanks to MegaLag, a well-known New Zealand content creator specializing in tech investigations. His video, titled "Uncovering Honey's Influencer Scam," revealed what he described as a "last-click attribution" scheme , in which Honey replaced influencers' affiliate cookies with its own. This deception allowed the company to pocket the commissions generated by recommendations from creators like MegaLag, who had directed users to make purchases through their promotional links.
The business model under the microscope
Honey's practices were described by MegaLag as one of the most aggressive and blatant marketing strategies in recent times. According to the YouTuber, the extension even has agreements with retailers to prioritize discount codes that are less beneficial to consumers. This contradicts its main promise of offering the best savings opportunities.
The mechanism works as follows: when making a purchase, a user who previously clicked on an affiliate link recommended by an influencer encounters a Honey pop-up window. Regardless of whether the extension finds a valid discount or not, the original affiliate cookie is replaced with a Honey cookie, diverting the commission to PayPal.
Impact on content creators
This practice doesn't just affect major internet personalities like Linus Sebastian of Linus Tech Tips or Jimmy Donaldson (known as MrBeast), who have been Honey ambassadors. It has also harmed smaller creators who rely on affiliate commissions as a crucial source of income. MegaLag estimated that Honey has sponsored more than 5.000 videos across 1.000 different channels, reaching an impressive 7.800 billion views.
Following these revelations, several influencers have decided to cut ties with the company. However, many of them claim that they were completely unaware of the tactics employed by Honey before agreeing to the promotional deals.
PayPal and Honey's reaction
In response to the accusations, a Honey spokesperson defended the tool's legitimacy, stating that it follows "industry standards and practices," including the controversial last-click attribution. However, these arguments have not been enough to quell public discontent and the initiation of legal action. On December 29, a group of lawyers filed a class-action lawsuit against PayPal , seeking damages exceeding $5 million on behalf of the affected creators.
Additionally, several consumer rights advocates and figures in the tech community, including well-known developer Hank Green, have voiced their opposition. In a recent video, Green called Honey’s practices “blatant theft” and blamed not only the company but also the current ecosystem that allows such things to happen.
Betrayal of the consumer
The criticism isn't limited to its impact on influencers. Honey has also been accused of failing to fulfill its primary function of saving consumers money. According to MegaLag, in many cases the extension applies less effective codes than those users could find manually. This not only calls its usefulness into question but also leaves shoppers with a false sense of security.
An uncertain future for Honey
The scandal highlights the lack of transparency in the affiliate marketing and online advertising industry. As the investigation led by MegaLag unfolds, more and more questions are being raised about the true extent of Honey’s practices and their potential legal repercussions. The content creator has announced that this is just the first installment of a three-part video series, which promises to reveal even more dark details about Honey’s operation.
The case also highlights the importance of stricter regulation in the industry, both to protect consumers and content creators who rely on transparent and fair business agreements. While the story is far from over, one thing is clear: what began as a small browser extension has become the center of one of the biggest controversies in the recent digital landscape.
This episode serves as a reminder that not all that glitters is gold, and that even seemingly harmless tools can hide questionable practices behind their apparent usefulness. In an increasingly digitalized world, both users and creators should be more vigilant about the actors they choose to collaborate with or trust.