For many years, PayPal’s Honey browser extension has been widely praised as an efficient and user-friendly digital tool that simplifies the process of finding discount codes and coupons while shopping online. Consumers have come to rely on its automated functionality to save both time and money, viewing it as a trustworthy assistant for locating the best available deals across countless e-commerce platforms. However, in recent months, the extension’s reputation has taken a dramatic turn, as it has become the focal point of a growing public controversy. Following a detailed investigative series from YouTuber MegaLag, accusations have surfaced portraying Honey not as a benign coupon helper, but as a platform engaged in questionable business behavior. The creator’s initial exposé alleged that Honey had been “stealing money from influencers,” a serious claim that sparked widespread discussions within both the digital marketing and online consumer communities. A year later, MegaLag returned with a follow-up video that intensified the debate, presenting new allegations that included Honey’s supposed targeting of underage users, its collection of personal data from individuals who had never registered with the service, and its unfair treatment of small businesses allegedly exploited through unethical practices.
The original video placed particular emphasis on Honey’s implementation of what is known as “last-click attribution.” This marketing mechanism assigns credit for a completed sale to the final marketing touchpoint—often meaning that Honey’s browser cookie might replace or override other tracking cookies at the moment when a customer interacts with the extension. In essence, the system potentially allowed Honey to claim commission for purchases that may have been initiated or influenced by other parties, resulting in financial losses for influencers and affiliates who rightfully earned those conversions. MegaLag’s second release broadened the scope of investigation significantly, delving into a thread of email correspondence between Honey representatives and various small businesses that claimed revenue losses. These correspondences reportedly revealed situations in which Honey used private coupon codes—originally intended for closed customer groups—as public marketing tools, thereby diminishing sales margins for smaller companies. In addition, the video alleged that Honey exerted pressure on affected businesses to formally become advertising partners in order to regain control over their brand presence and discount codes. Compounding the controversy were examples of Honey’s sponsorship arrangements with high-profile YouTubers, including creators with massive, youthful audiences such as MrBeast—further fueling criticism that the company deliberately courted younger demographics despite ethical concerns about such targeting.
Following the first wave of criticism in 2024, PayPal, the parent company of Honey, issued official statements defending its practices. The company asserted that it adheres to established industry standards and marketing protocols, including widely accepted attribution models like last-click methodology. Nevertheless, these reassurances did little to placate the discontent among creators and marketers who claim to have been deprived of legitimate earnings. Many feel that PayPal’s rationalizations fail to address the deeper ethical implications surrounding consent, transparency, and fair compensation. Their growing dissatisfaction has now escalated into legal action. Several influential YouTube channels, including Legal Eagle and GamersNexus, have reportedly initiated lawsuits against PayPal and Honey, seeking accountability and restitution for the alleged financial damages incurred through these practices. As the legal and public debates continue to unfold, this controversy not only casts doubt on Honey’s image as a benevolent shopping companion but also raises broader questions about data ethics, marketing fairness, and the future of trust within digital commerce. Below you can explore our comprehensive coverage of this developing story and examine in detail the complex intersection of technology, profit, and responsibility that defines the current scandal.
Sourse: https://www.theverge.com/24343913/paypal-honey-megalag-coupon-scam-affiliate-fees
