PayPal Honey: Money Theft 💰 Scandal Exposed! 😱

Honey’s Shady Practices Unmasked
PayPal’s Honey browser extension, once lauded for its convenience in finding online coupons, is now facing serious accusations of wrongdoing. Initial scrutiny, spearheaded by a deep dive from YouTuber MegaLag in 2024, alleged that Honey was “stealing money from influencers” by utilizing last-click attribution, replacing other companies’ tracking cookies when users interacted with the extension.

Influencers Left Empty-Handed
The concerns escalated significantly when YouTuber MegaLag returned a year later with a second video detailing further troubling practices. Honey reportedly collected data on individuals who never signed up for the service and exploited small businesses by employing private coupon codes and attempting to force them into partnership agreements.

A History of Deceptive Tactics
Notably, the situation echoes a similar issue when Aspirationsigned up to be the Clippers’ jersey patch sponsor (and allegedly circumvent the NBA’s salary cap), as Honey had previously swapped referral codes – effectively replacing other companies' tracking. Brian Windhorst pointed out this history, and Honey’s actions are now being scrutinized against this precedent.

User Numbers Plummeting
Six months after being accused of cheating shoppers and influencers, the PayPal-owned browser extension Honey continues to lose users. According to a report by 9to5Google, the number of Chrome extension users has declined significantly, falling from a peak of 20 million to 15 million.

The “Scam” Allegations Grow
This decline followed accusations of a “scam,” with creators alleging that Honey was swapping in its own affiliate links before shoppers completed purchases, thereby diverting revenue from the influencers it had previously paid for promotion. The issue gained traction after YouTuber MegaLag published a video detailing these concerns.

Google Responds with Policy Update
Google has since updated its affiliate ads policy for Chrome extensions to address these complaints. The Legal Eagle channel filed a lawsuit earlier this month, accusing Honey of intentionally replacing creators’ affiliate links with its own, even when no shopper benefit was offered, ultimately depriving creators of compensation.

Honey's Failure to Deliver
When shopping online, many consumers rely on browser extensions to discover coupon codes. However, as MegaLag has repeatedly observed, these extensions frequently fail to locate valid codes, or they may offer a Honey-branded coupon even when a straightforward internet search would reveal a more advantageous deal.