The Honey Trap: A Deep Dive into the Browser Extension Controversy

You’ve probably heard about Honey—the browser extension that claims to save you money. But what if I told you that Honey, owned by PayPal, might be the biggest scam in the influencer marketing world? The claims promoted by influencers are not just exaggerated; they’re often untrue. Even worse, Honey hasn’t only been misleading consumers—it’s also been accused of siphoning money from the very influencers promoting it.

The Allegations

This three-part investigation, spearheaded by YouTuber MegaLag, uncovers potential advertising fraud, affiliate fraud, illegal data collection, deception, coercion, and more. After years of research involving hundreds of documents, emails, sponsorships, and interviews with victims, the findings suggest a deeper, more sinister operation.

Let’s dive into how this seemingly harmless browser extension works—and how it allegedly exploits both consumers and content creators.

The Illusion of Savings

Honey positions itself as a free browser extension that helps users find the best deals online. It gained popularity through endorsements from high-profile influencers on platforms like YouTube. But behind the scenes, it allegedly replaces affiliate tracking cookies with its own, stealing commissions from influencers who originally referred the sale.

Here’s an example:

• You watch a tech review video and click an influencer’s affiliate link to buy a product.
• When you reach the checkout page, Honey pops up, offering to apply discount codes.
• Whether or not it finds a code, Honey replaces the influencer’s tracking cookie with its own, pocketing the commission.

This practice is not just sneaky—it potentially robs content creators of millions in revenue.

The PayPal Connection

PayPal purchased Honey for $4 billion, a testament to its massive reach. However, PayPal allegedly uses Honey’s mechanisms to redirect affiliate commissions, benefiting from a lack of transparency.

MegaLag conducted tests to confirm these claims:

1. Scenario 1: When Honey’s discount feature is used, the influencer’s affiliate cookie is replaced, even if no discount is found.
2. Scenario 2: Honey Gold (now PayPal Rewards) offers cashback to users by sharing a fraction of the stolen commission. For example, MegaLag’s $35 commission was reduced to just 89 cents in cashback for the consumer.
3. Scenario 3: Even when Honey has nothing to offer, it pops up with irrelevant prompts or PayPal checkout options to claim the last click and secure the commission.

The Broader Impact

The harm isn’t limited to wealthy influencers. Small creators, bloggers, and artists who rely on affiliate marketing for income are also affected. Honey’s dominance in the “last-click attribution” model ensures that it almost always wins commissions, leaving genuine referrers empty-handed.

The Linus Tech Tips Case

One notable example is Linus Tech Tips (LTT), a prominent tech channel that promoted Honey extensively. After realizing Honey’s practices, LTT terminated their partnership. However, the fact that it took years for a tech-savvy team to uncover these issues highlights just how deceptive Honey’s operations are.

LTT later partnered with another similar browser extension, sparking further questions about transparency in the influencer marketing industry.

The Consumer Betrayal

Beyond harming creators, Honey has also failed consumers. In many cases, its much-touted discounts are either non-existent or inferior to manually found coupon codes. This undermines its core promise of saving users money, leaving them with a false sense of security.

The Takeaway

The Honey controversy underscores the need for transparency in online advertising and affiliate marketing. Consumers deserve to know when their data is being exploited, and creators should not lose income to corporate giants engaging in questionable practices.

As MegaLag’s investigation unfolds, one thing is clear: what appears to be a harmless browser extension may well be one of the biggest scams in digital marketing history.

Stay tuned for more updates as this story develops.

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