PayPal’s popular Honey browser extension is facing serious accusations of being a “scam” following a detailed investigation by YouTuber MegaLag. The allegations suggest the app may have unfairly profited at the expense of influencers, collected data from non-users, and exploited small businesses. These claims have cast a shadow over an app long celebrated for its ease in finding online discounts.

At the heart of the initial controversy is Honey’s alleged use of “last-click attribution.” This method, critics argue, allows Honey to replace existing tracking cookies when a user interacts with its service, potentially diverting affiliate commissions away from creators who originally referred the customer. This practice has ignited anger among content creators who believe they have lost significant earnings.

The second wave of accusations expands on these concerns, detailing how Honey purportedly used private coupon codes that impacted small businesses’ revenue streams. Furthermore, the investigation highlights Honey’s alleged attempts to pressure these businesses into partnership agreements. The app’s marketing strategy, including sponsorships with YouTubers who command large, younger audiences, has also come under scrutiny.

PayPal has previously defended its practices, stating in early 2024 that Honey adheres to “industry rules and practices,” specifically referencing last-click attribution. However, this defense has done little to quell the discontent among those who feel wronged by the extension’s operations. The financial implications for creators and businesses remain a central point of contention.

The fallout from these allegations has led to legal action, with several prominent YouTube channels, including Legal Eagle and GamersNexus, reportedly filing lawsuits against the company. These lawsuits underscore the gravity of the claims and the potential financial damages involved for those affected by Honey’s alleged practices.

This ongoing controversy raises significant questions about the transparency and ethical implications of browser extensions that mediate online shopping. As more information surfaces, consumers and businesses alike are urged to scrutinize the tools they use to navigate the digital marketplace and ensure fair practices are upheld.

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Keywords: PayPal Honey scam, Honey coupon app, affiliate marketing controversy, last-click attribution, MegaLag investigation, small business exploitation, influencer revenue loss, PayPal data collection