The popular money-saving browser extension Honey, owned by PayPal, has come under intense scrutiny following allegations of deceptive practices and unfair revenue manipulation. With 19 million Chrome users, this widely-used shopping tool faces serious accusations that challenge its reputation as a consumer-friendly service.
The Coupon Code Controversy
Recent investigations reveal that Honey may not deliver on its promise to find every working promo code on the internet. YouTuber MegaLag's extensive research demonstrates that the extension often overlooks better discount codes that are readily available through simple internet searches. More concerning is the suggestion that this limitation is intentional, stemming from specific agreements with retail partners that allow them to control which discount codes users can access.
Affiliate Revenue Manipulation
A major point of contention involves Honey's handling of affiliate marketing relationships. The extension allegedly overwrites existing affiliate tracking cookies when users interact with its discount pop-up at checkout, regardless of whether it successfully finds a coupon. This practice effectively redirects commission payments from content creators to Honey, even when the original influencer's link initiated the purchase journey. In one documented case, Honey reportedly intercepted a USD $35 commission for a NordVPN subscription, returning only USD $0.89 to the customer as cashback while eliminating the original affiliate's compensation.
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| A person calculating their budget and savings, reflecting the financial concerns raised over Honey's affiliate revenue manipulation |
Industry Impact and Response
The controversy has already led to significant fallout within the creator community. Notable tech channel Linus Tech Tips has terminated its sponsorship relationship with Honey over these practices. PayPal's response to these allegations has been minimal, with VP of corporate communications Josh Criscoe stating only that Honey follows industry rules and practices, including last-click attribution. This explanation has done little to address concerns about the transparency and fairness of Honey's business model.
Consumer Implications
For consumers, these revelations suggest that relying solely on Honey for discount codes might result in missing out on better deals. The extension's apparent prioritization of partner relationships over maximum savings potential raises questions about its value proposition as a money-saving tool. Users may need to consider alternative methods for finding discount codes or carefully evaluate Honey's recommendations against manual searches.