A recent YouTube exposé has cast a spotlight on Honey, the widely used browser extension owned by PayPal, raising concerns about its practices and relationship with influencers.
The video, uploaded by New Zealand-based content creator MegaLag, has garnered over 6 million views in just two days, fueling widespread debate across online communities.
YouTube exposé accuses Honey of deceptive practices
The 23-minute investigative video alleges that Honey uses questionable practices such as overriding influencer affiliate links, opening hidden tabs to simulate referrals, and prioritizing partner coupon codes over potentially better deals.
According to MegaLag, these actions mislead consumers and undercut influencers and merchants.
In the video, MegaLag claims that Honey replaces influencers’ affiliate links with its own, effectively intercepting commissions that would have otherwise gone to the creators who initially referred the customer.
“PayPal didn’t refer the customer to the store. They didn’t promote any of the products. The influencer did that,” MegaLag states.
PayPal provided absolutely zero value to the customer, yet they were rewarded for the sale.
MrBeast, MKBHD, and Linus Tech Tips under scrutiny
Honey has enjoyed widespread promotion from high-profile YouTubers such as Jimmy “MrBeast” Donaldson, Marques “MKBHD” Brownlee, and Linus Sebastian of Linus Tech Tips.
These influencers, boasting millions of subscribers collectively, have featured Honey in sponsored content across their platforms. However, none of them immediately responded to requests for comment regarding the allegations.
Linus Tech Tips, which has integrated Honey into more than 160 videos totaling nearly 200 million combined views, reportedly ended its partnership with Honey after discovering the alleged affiliate link replacement.
While Linus Tech Tips did not publicly address the issue, it shared concerns with the creator community privately.
MegaLag highlighted the implications for influencers, stating, “Imagine being the influencers who promoted Honey, telling your audience—who, by the way, are the most likely to use your affiliate links—to download an app that poaches your affiliate sales. It’s crazy.”
PayPal responds to accusations
In response to the video, a spokesperson for PayPal Honey issued a statement denying the allegations of deceptive practices.
“Honey is free to use and provides millions of shoppers with additional savings on their purchases whenever possible.
Honey helps merchants reduce cart abandonment and comparison shopping while increasing sales conversion. Honey follows industry rules and practices, including last-click attribution.”
PayPal acquired Honey for approximately $4 billion in 2020. Founded in 2012 by Ryan Hudson and George Ruan, Honey quickly gained traction after a bug tester leaked the extension to Reddit.
By 2014, it had amassed nearly one million users organically, driven by viral adoption.
How Honey operates
Honey’s business model revolves around earning commission from retail partners when users make purchases through the extension. A portion of the commission is returned to the customer through cashback rewards.
Honey promotes itself as a tool that finds and applies coupon codes, helping consumers save money effortlessly.
However, MegaLag’s investigation suggests otherwise. The video claims that Honey intentionally prioritizes less competitive coupon codes from its partner merchants to secure commissions, even if better deals exist elsewhere.
This practice, MegaLag asserts, misleads users into believing they are receiving optimal discounts.
Impact on businesses and consumers
The controversy extends beyond influencers and users. MegaLag’s video alleges that Honey’s practices harm businesses by distributing unauthorized coupon codes, which can lead to merchants reporting significant revenue losses.
Merchants may increase prices to offset the impact of invalid or excessive discounts, ultimately hurting consumers.
“Honey is helping businesses prevent consumers from finding the best deals while pretending to do the opposite,” MegaLag said.
Despite these claims, Honey’s influence remains undeniable. T
he company has sponsored around 5,000 YouTube videos across more than 1,000 channels, amassing over 7.8 billion views. Honey’s aggressive marketing strategy, particularly through influencer partnerships, has positioned it as a household name in online shopping.
The broader implications for influencer marketing
The allegations against Honey raise larger questions about transparency and trust in influencer marketing.
Influencers have become powerful intermediaries between brands and consumers, but the Honey controversy highlights the potential for conflicts of interest and hidden mechanisms that undermine creators’ efforts.
Influencers depend heavily on affiliate links and sponsorships for revenue, and the prospect of having their commissions redirected by third-party tools threatens their business model.
This situation underscores the importance of due diligence when entering brand partnerships.
Lessons for consumers
For consumers, the exposé serves as a reminder to remain vigilant about the tools they use while shopping online.
While Honey markets itself as a consumer-friendly extension, the accusations suggest that users may not always receive the best deals.
Experts recommend comparing discounts manually across different platforms to ensure they secure the best price.
As MegaLag’s video continues to gain traction, public pressure may compel Honey and PayPal to reconsider some of their practices.
Meanwhile, creators and influencers are likely to reassess their relationships with similar browser extensions moving forward.
What’s next for Honey and PayPal?
Although Honey has denied the allegations, the backlash from MegaLag’s exposé has prompted discussions within the tech community and influencer circles.
It remains to be seen whether further investigations or regulatory scrutiny will follow.
The controversy surrounding Honey highlights the evolving dynamics of online shopping, influencer marketing, and consumer trust.
As the lines between content creation and commerce continue to blur, transparency and accountability will remain critical to sustaining trust in digital ecosystems.
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