Honey, the popular browser extension owned by PayPal, is being accused of scamming both consumers and content creators. While it presents itself as a tool that automatically finds the best deals online, investigations reveal a much darker picture of its practices. This article will explore how Honey allegedly operates, who it impacts, and what you should do about it.
What is Honey?
Honey is a browser extension that claims to automatically find and apply coupon codes when you shop online. The idea is that it saves you time and money by searching for the best deals for you. Many people have installed it based on recommendations from popular influencers and YouTubers, making it seem like a must-have tool.
The Allegations: How Honey is Scamming Users and Creators
Investigations, most notably by the YouTube channel MegaLag, have uncovered serious allegations against Honey. Here’s a breakdown of how Honey is accused of scamming both influencers and shoppers:
1. Stealing Affiliate Revenue from Content Creators:
- When you click on an affiliate link from a YouTuber, blogger, or website, a cookie is stored in your browser that tracks who sent you there. When you buy the product, the referrer earns a commission.
- Honey is accused of stealthily replacing these affiliate cookies with its own during checkout, even if it doesn’t find any coupon codes. This means that the content creator who promoted the product gets no commission, and Honey pockets the money instead.
- This practice is referred to as “last click attribution,” where the last click gets the credit. Honey pops up at the end of your purchase journey, virtually guaranteeing they get the credit.
- This affects not only large influencers, but also smaller creators, bloggers, and artists who rely on affiliate commissions to support their work.
- Even when Honey offers a “rewards program” it’s accused of just taking the commission and giving the shopper a small percentage as reward points.
2. Hiding the Best Deals from Shoppers:
- Honey claims to find the best coupon codes available on the internet, but this is allegedly false.
- Retailers that partner with Honey have control over which coupon codes are shown to users.
- This means that Honey may show you a lower discount code approved by the retailer, even if better deals exist. In other words, Honey is accused of prioritizing deals that benefit retailers rather than the consumer.
- This gives retailers more control over the customer journey, allowing them to convert customers while also controlling the discount code percentage.
- Honey has even been accused of using the fact that people trust it to not search for deals as a way to hide better deals.
- Honey also pops up when it has nothing to offer, and if you click on it, PayPal takes the sale. This happens even if you’re already checking out with PayPal.
Honey’s Response and Legal Action
- PayPal, Honey’s owner, has stated that it follows “industry rules and practices,” including last-click attribution.
- However, the company has also been accused of false advertising and has been hit with a class-action lawsuit seeking damages over $5 million.
- The Better Business Bureau launched an inquiry into Honey’s advertising claims but dropped the case after Honey discontinued the claims.
What Should You Do?
- Many people have already uninstalled the Honey extension.
- If you want to support your favorite content creators, it’s best to remove the extension.
- Even if you don’t care about the commission aspect, Honey might not be finding you the best deals, making it not worth having installed.
- Be aware that if a product is free, you might be the product, and your data might be used in ways you don’t know.
Honey is being accused of engaging in a deceptive and harmful practice that impacts both content creators and consumers. While it presents itself as a helpful tool, its actions allegedly suggest a more sinister intent to steal from creators and hide the best deals from users. It’s important to stay aware and consider the implications of using such services. As more information emerges, the true nature of Honey’s practices will hopefully become clearer.
