Introduction:
When something is marketed as "free money," alarm bells should ring.
The PayPal-owned browser extension Honey—once heralded as the ultimate deal hunter for online shoppers—has found itself at the epicentre of what could be the largest influencer scandal in history.
As allegations of commission theft and deceptive practices surface, the shiny veneer of this billion-dollar tool is cracking.
Mega-influencers like MrBeast, who helped propel Honey to stardom, now face the fallout of a scandal that could reshape the influencer economy.
How did a platform celebrated for saving shoppers money turn into a cautionary tale of exploitation, lawsuits, and betrayed trust?
Let’s dive into the digital underbelly of Honey to uncover how influencers, brands, and consumers alike got caught in its sticky web.
A honey
I'm sure you thought of something sweet right away, but...
Due to the Honey extension, which was misleading consumers, PayPal was at the center of a scandal in late 2024.
Up to three million customers suddenly stopped trusting the PayPal application Honey, which has been drawing people in for years with promises of savings and discounts.
A new video from MegaLag demonstrates how the well-known extension uses contentious strategies that harm users and content producers.
Once praised as every shopper's greatest friend, PayPal's browser extension Honey is now under fire for allegedly stealing influencer commissions directly out of their wallets.
However, let's begin in order.
Honey, what is it?
Honey is a browser plugin that was introduced in 2012 with the goal of assisting consumers in locating and using the best discount codes at the point of sale.
Honey has gained widespread recognition since PayPal purchased it in 2020 for an astounding $4 billion.
Honey has established itself as the ultimate money-saver for internet buyers because of its more than 30,000 partner companies and endorsements from mega-influencers like MrBeast.
However, a scandal that is endangering its reputation lurks beneath its user-friendly interface.
PayPal owns the free browser extension Honey, which assists users in finding deals when they shop online.
Additionally, the addon gives users points that they may exchange for gift cards, PayPal credits, or money.
Influencer marketing was Honey's primary marketing tactic.
Influencers on websites like YouTube and TikTok have promoted honey with the alluring slogan, "It's literally free money!"
Honey is renowned for its ability to locate the "best prices" when buying online. While the functionality appears appealing, the details of Honey's business plan present a distinct perspective.
The well-known browser plugin Honey was at the center of a scandal in late December 2024.
MegaLag, a YouTube blogger, stepped up and made a daring charge against the firm in a video.
According to him, Honey is abusing affiliate connections that are meant to compensate influencers for product promotion and deceptive advertising.
Such news was unavoidable and sparked a fierce online response right away.
Several well-known influencers, including Mr. Beast, initially endorsed Honey, establishing his reputation for trustworthiness.
You are aware that products or services gain popularity quickly when well-known influencers endorse them, but you must always exercise caution.
What went wrong with Honey, then?
Or allow me to ask you this:
What do you get when you combine a PayPal-owned browser extension with one of the largest worldwide influencers (MrBeast, MKBHD Inc.)?
This situation clearly has the potential to lead to the largest influencer fraud in history. Naturally, for the time being, this is still at the level of accusations, but we'll see.
The world of influencers, where YouTube creators earn millions of dollars through affiliate marketing and sponsorships, is facing challenges.
The person who uploaded the video, YouTuber MegaLag, was among the first to recognize that anything was wrong.
He observed that Honey intentionally delayed the setting of its cookie until the user had logged out and then replaced the links with its own when a user clicked on a creator's affiliate link.
It transferred the commission payments to itself in the process.
Imagine going to your favorite YouTuber's channel and seeing them promote something with an affiliate link.
After clicking on that affiliate link, you are ready to buy the product.
Honey unexpectedly shows up and suggests that you search for coupons before making a purchase to get the best deal.
But Honey substitutes its own cookie for the affiliate cookie, generating a fee without offering anything of value, while your favourite YouTuber receives nothing.
An avalanche has started
Many users voiced their displeasure and concerns with Honey's tactics following the release of MegaLag's video.
Influencers that had previously collaborated with Honey terminated their relationships with the platform.
Since its December 21 release, the MegaLag author's video has received over 14 million views, causing a wave of unfavourable comments and widespread uninstalls of the Honey extension.
In just a few weeks, the extension's user base on the Chrome Web Store has decreased from over 20 million to barely 17 million, according to the Wayback Machine.
The Response of Honey
Med has also not been quiet. According to spokespeople, their procedures, which include allocating commissions using a "last click" methodology, are consistent with industry norms.
By lowering cart abandonment rates, they have demonstrated their dedication to offering value to both shoppers and merchants.
Even with Honey's explanation, the company's predicament is becoming worse.
Lawsuits
In a class action lawsuit, Christensen Law Group demanded damages exceeding $5 million. LegalEagle, another YouTuber, later filed a fraud lawsuit against PayPal.
PayPal is accused in the lawsuit of:
· Willfully disrupting future business partnerships and contracts and
· Using Honey's methods to steal influencer commissions
The dispute has turned into a big battle (like David vs. Goliath) between the fintech behemoth and influencers, with the latter seeking damages exceeding $5 million.
Taking a bigger picture
The foundation of influencer income is affiliate marketing, and accusations such as these jeopardize the confidence that exists between customers, companies, and influencers.
Sponsorships, partnerships, and advertising are how creators earn a living.
However, these practices hinder the entire "influencer" economy.
Short-term profits are less significant than long-term client connections.
Honey became well-known and profitable very soon. However, partners and clients stopped doing business with the company after its fraud schemes were made public.
What began as a tool to make online shopping easier has turned into a warning to the IT industry.
The accusations made against Honey underscore the necessity of openness and equity in the influencers tech sector.
Conclusion
One thing is evident as influencers mobilize for accountability: the age of unbridled technical domination is coming to terms with it.
Digital technologies that appear helpful at first look can conceal corporate practices that hurt users and influencers, as demonstrated by Honey.
As a result of these disclosures, more and more consumers are searching for trustworthy and transparent alternatives to online buying.
This instance reminds us that "free" rarely means truly free and calls into question our ability to trust the tools we use on a daily basis.
The stakes are high whether you're a buyer, influencer, or just an interested watcher, so we'll be watching this story as it develops.