Is the Honey Extension by PayPal Scamming You?
Updated On: December 23, 2024
A recent YouTube video by the channel Megalag has stirred up buzz about the legitimacy of the popular Honey browser extension, now owned by PayPal. The 23-minute exposé alleges that Honey, marketed as a money-saving tool, is actually a honeypot affiliate marketing scam, enticing users with sweet promises while undermining the trust of both influencers and shoppers.
The allegations against Honey
Megalag dedicated years investigating Honey, ultimately confirming his suspicion that the extension's too-good-to-be-true promise was exactly that. In his video, he accuses Honey of hijacking affiliate links created by influencers, redirecting their affiliate cookies—and the associated commissions—back to the company itself, even when the influencers successfully guide customers to make purchases. This practice, often called "cookie stuffing," affects sponsored content creators relying on affiliate revenue. Additionally, the video challenges Honey's claim of finding the best deals, suggesting that the discounts shown to users are often predetermined by partner stores rather than reflecting the best available options.
Honey's cashback and rewards program, Honey Gold—also known as PayPal Rewards—is portrayed as a strategy to obscure its affiliate link replacement practices. Even when no coupons are available, the program allegedly ensures Honey secures "the last click," determining where the commission money goes. For instance, if you visit an Amazon page and proceed to checkout, Honey employs various tactics to claim that last click, such as bombarding users with popups or enticing them with Honey Gold points. According to the video, the rewards provided through their cashback program are minimal compared to the commissions Honey collects. To illustrate this, the creator demonstrated a purchase through his own affiliate link to NordVPN, revealing that Honey would have earned $35 in commission while offering only $0.89 as a “reward” to the customer.
The video also raises concerns about Honey's data collection practices, suggesting the extension gathers user data under the guise of improving its service, potentially for use in targeted advertising.
Community reactions
Many expressed shock over the alleged affiliate link hijacking, with one user noting, "If Honey replaces affiliate links, it’s not just influencers who lose—it’s every content creator with an affiliate-based revenue model."
Some users took immediate action, uninstalling the extension and even filing FTC reports. Others speculated that the revelations could lead to a class action lawsuit. While many criticized influencers for promoting the extension without due diligence, others pointed out that consumers may not directly lose money from Honey’s practices.