A controversial browser extension, acquired by PayPal in 2020 for a staggering $4.000 billion, is under public scrutiny after being accused of misleading both online shoppers and the influencers who helped popularize it. The tool in question, Honey, was widely promoted as a service that save money the user by searching for and applying discount codes. However, recent investigations have brought to light allegedly fraudulent practices that have generated a wave of indignation on social networks and the media.
The scandal began to gain notoriety thanks to MegaLag, a well-known New Zealand content creator specializing in technology investigations. His video titled “Uncovering the Honey Influencer Scam” revealed what he described as a “last click attribution” scheme, in which Honey replaced influencers’ affiliate cookies with its own cookies. This scam allowed the company to pocket commissions generated by referrals from creators like MegaLag, who had directed users to make purchases through its 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 of late. As the YouTuber explained, the extension even has agreements with retailers to prioritize discount codes that are less beneficial to consumers. This contravenes its main promise of offering the best savings opportunities.
The mechanism works as follows: when making a purchase, the user who previously clicked on an affiliate link recommended by an influencer finds a Honey pop-up. Regardless of whether the extension finds a valid discount or not, the original affiliate cookie is replaced for one from Honey, diverting the commission to the PayPal company.
Impact on content creators
This practice not only affects big Internet personalities like Linus Sebastian of Linus Tech Tips or Jimmy Donaldson (known as MrBeast), who have been Honey ambassadors. has hurt small creators who rely on affiliate commissions as a crucial source of revenue. MegaLag estimated that Honey has sponsored over 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 allegations, a Honey spokesperson defended the legitimacy of the tool, stating that it follows “industry standards and practices,” including the controversial last-click attribution. However, the arguments have not been enough to stem public discontent and the initiation of legal action. On December 29, a group of lawyers filed a class action lawsuit against PayPal, seeking damages in excess of $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 is not limited to the impact on influencers. Honey has also been accused of failing to fulfill her primary function of save money to consumers. According to MegaLag, in many cases the extension applies less effective codes than those that users could find manually. This not only calls into question its usefulness, but also leaves buyers 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 for protect consumers as well as content creators who rely on transparent and fair business dealings. While the story is still far from settled, one thing is clear: what started as a small browser extension has become the center of one of the biggest controversies in recent digital times.
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.