Multi-billion dollar Honey extension alleged to be a scam

The PayPal Honey browser extension, designed to help users find better deals online, has come under fire from YouTuber MegaLag, who alleges that the platform is a “scam” that “steals money from influencers.”

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Honey operates by automatically searching for coupon codes during online checkouts. However, MegaLag claims that the extension often fails to find the best deals, sometimes even prioritizing its own subpar codes over readily available options.

Furthermore, MegaLag alleges that Honey hijacks affiliate revenue from influencers. When users click on an affiliate link from an influencer and then encounter Honey’s deal pop-up during checkout, Honey allegedly replaces the original affiliate link with its own tracking link. This occurs regardless of whether Honey actually provides a valid discount, effectively redirecting the affiliate credit to Honey instead of the original influencer.

While PayPal VP of corporate communications Josh Criscoe maintains that Honey adheres to “industry rules and practices, including last-click attribution,” this isn’t the first time such accusations have surfaced. A 2021 Twitter post advised users to avoid using Honey’s discount codes within the same browser to prevent it from claiming affiliate credit. Similarly, Linus Media Group dropped Honey as a sponsor in 2022 due to concerns over its affiliate link practices.

Despite these concerns, Honey remains a popular extension, with its convenience leading to widespread recommendations. MegaLag estimates that nearly 5,000 YouTube channels have featured Honey in sponsored videos.