PayPal Honey Under Fire: Allegations of Stealing from YouTubers and Customers

The Controversy Surrounding PayPal Honey: A Deep Dive

The PayPal Honey browser extension has made a name for itself as a convenient tool for online shoppers, claiming to find the best deals and discounts automatically. However, a recently published video by YouTuber MegaLag has sparked controversy, alleging that Honey has been engaging in questionable practices that could potentially harm both shoppers and influencers alike.

How Honey Claims to Work

According to its official pitch, Honey promises to "find every working promo code on the internet" as you shop online. The extension pops up at checkout, ostensibly looking for discount codes that can save you money. But as MegaLag points out, it often fails to deliver on this promise, frequently offering Honey-branded codes or not finding any discount at all.

Allegations of Unfair Practices

In his video, MegaLag claims that Honey's modus operandi includes ignoring better deals available outside of its system, allegedly as part of its partnerships with retail clients. This raises questions about the transparency and honesty of the service being offered to consumers.

Furthermore, MegaLag alleges that Honey hijacks affiliate revenue from influencers. When users click on affiliate links shared by influencers, Honey reportedly swaps in its own tracking link, ensuring that it receives credit for sales regardless of whether they provided a valid coupon code. This has led to frustrations among content creators who rely on affiliate revenue to support their channels.

The Response from PayPal

In response to these allegations, PayPal's Vice President of Corporate Communications, Josh Criscoe, stated that "Honey follows industry rules and practices, including last-click attribution." This response was aimed at defending Honey's reputation amid criticisms.

Past Concerns and Recommendations

This isn't the first time Honey has faced scrutiny. A post on Twitter from 2021 advised users to employ Honey's discount codes using a different browser to avoid the hijacking of affiliate credits. Additionally, an employee from Linus Media Group revealed that Linus Tech Tips had discontinued its sponsorship with Honey due to concerns about these practices.

Widespread Usage and Recommendations

Despite the growing controversy, Honey remains widely recommended. MegaLag notes that the extension has been promoted in nearly 5,000 sponsored videos across approximately 1,000 YouTube channels, including recommendations from major platforms like The Verge.

Conclusion

While Honey's convenience and features might appeal to many online shoppers, potential users should remain aware of the ongoing allegations against the service. With claims of deceptive practices, evaluating the effectiveness and integrity of such tools becomes paramount. As consumer awareness grows, it is crucial to ensure that one’s shopping habits do not inadvertently support questionable business practices.

Call to Action

What are your thoughts on the PayPal Honey controversy? Have you had any experiences with the extension that you would like to share? Join the conversation in the comments below!