YouTuber claims Honey exploits influencer links and offers limited value

In a recent controversy shaking the tech and e-commerce community, a YouTuber has accused PayPal-owned Honey Browser—a popular browser extension for finding coupons—of deceptive practices targeting both influencers and consumers. The allegations surfaced in a video titled “Exposing the Honey Influencer Scam,” posted on December 21 by content creator MegaLag.

The video has since garnered over 9 million views, sparking heated discussions online.

Allegations against Honey Browser

MegaLag alleges that Honey, acquired by PayPal in 2020 for $4 billion, engages in questionable activities, including:

• Hijacking Affiliate Links: Redirecting commissions that influencers would typically earn for promoting products.
• Limited Coupon Offerings: Frequently claiming no coupons are available while competitors like RetailMeNot offer better discounts.
• Misleading Advertisements: Promising comprehensive coupon coverage in its marketing while falling short in practice.

In the video, MegaLag criticizes Honey’s PayPal Rewards program, calling it a “lame cashback scheme.” He highlighted a stark disparity between earnings through personal affiliate links versus Honey’s rewards. For example, using his affiliate link to promote a $95 NordVPN subscription earned him $35 in commission, compared to just 89 cents in cashback through Honey.

What is Honey browser?

Originally launched in 2012, Honey is a browser extension that claims to help users save money by applying the best available coupon codes during online shopping. Since its acquisition by PayPal, the tool has expanded its features, including the introduction of PayPal Rewards, allowing users to earn points for cashback or gift cards.

However, the video raises questions about Honey’s ability to deliver on its promises. MegaLag highlighted instances where the platform failed to find coupons while competitors succeeded.

PayPal responded by stating that the coupons Honey offers come from merchant partnerships, deal networks, and user submissions, emphasizing that merchants ultimately decide which discounts Honey can showcase.

Honey’s advertising practices have also come under scrutiny. In 2020, the National Advertising Division (NAD) investigated claims in Honey’s ads, which suggested it could find “every working code on the internet.” Although Honey later discontinued these advertisements, critics argue that such claims have contributed to unrealistic consumer expectations.

PayPal’s defense

PayPal has strongly denied any wrongdoing, defending Honey’s practices as industry standards. Amy Bonitatibus, PayPal’s Chief Corporate Affairs Officer, stated:

“Honey is free to use and helps both shoppers save money and merchants increase sales by reducing cart abandonment.”

PayPal also defended the use of “last-click attribution,” a common method in affiliate marketing, and maintained that Honey Browser provides value to both consumers and retailers.

Public reaction

MegaLag’s exposé has prompted widespread debate, with many questioning Honey’s integrity and its impact on influencers who rely on affiliate marketing. While PayPal has not acknowledged any errors, the controversy could dent Honey’s reputation in an increasingly competitive landscape for online shopping tools.

As the story unfolds, it remains to be seen whether these allegations will lead to changes in Honey’s business practices—or greater scrutiny from regulators and users alike.