PayPal's Honey extension allegedly intercepts influencer earnings by replacing affiliate links, raising ethical concerns about its coupon practices and transparency.
PayPal-owned Honey is under fire after YouTuber MegaLag accused it of unethical practices in a video published this week. The browser extension, designed to find discounts for online shoppers, allegedly hijacks affiliate links to claim commission from sales. MegaLag claims Honey replaces influencer-tracked links with its own, depriving creators of their rightful earnings. This behavior violates the trust of creators who once promoted Honey to millions. Honey has been recommended in over 5,000 sponsored YouTube videos. However, some influencers and platforms, such as Linus Tech Tips, have dropped Honey due to its practices.
Honey’s core feature, finding promo codes at checkout, is also under scrutiny. According to MegaLag, the extension frequently prioritizes its own codes over better deals available online. Honey claims to search the web for the best promo codes, but critics argue it prioritizes deals tied to its retail partnerships. The Verge, once a supporter of Honey, has stopped recommending it, citing concerns over transparency. Customers now question whether Honey truly delivers the best discounts or merely serves its own interests.
PayPal responded to the allegations through its VP of communications, Josh Criscoe, asserting that Honey complies with industry standards like last-click attribution. However, critics argue that these standards do not justify taking commissions when Honey fails to offer a meaningful benefit. Similar complaints about Honey’s affiliate practices emerged as early as 2021. Users were advised to switch browsers to prevent Honey from overriding affiliate links, adding to customer frustration.
These allegations may damage Honey’s reputation as a trusted money-saving tool. MegaLag’s claims question whether Honey’s convenience comes at the cost of ethics. With the rise of alternative coupon tools and growing skepticism, Honey faces pressure to rebuild trust. Transparency and fair practices could determine its survival in the competitive coupon market. PayPal, a $65B company, may need to address these issues to protect its broader brand image.
Should PayPal enforce stricter rules on Honey's practices?
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