In recent months, PayPal owns the Honey extension (browser extension) has at the center of a major controversy. Famous for helping users find and apply discount codes while shopping online, Accusations of shady practices have been made against Honey, leading to it being branded “the biggest influencer scam of all time.”
What is The Honey Extension?
Honey was launched in 2012 as a browser extension designed to help users save money by automatically applying the best available coupons during checkout on over 30,000 websites.
It also offers perks like PayPal Rewards, cashback, and gift cards. In 2020, PayPal acquired Honey Extension for approximately $4 billion, further boosting its popularity.
The Scam Unveiled
The scandal came into the light as a detailed video posted by the New Zealand YouTuber, MegaLag described it as “the biggest influencer scam of all time.” Honey allegedly stole affiliate links used by influencers in the investigation on MegaLag.
When users would click on links of products within the videos, Honey would take the original tracking cookies and instead replace them to send the commision to which it should go to the influencer.
How Does It Work?
MegaLag found that Honey wouldn’t always apply the best coupon codes available. It preferred applying coupon codes given by its partners.
This sometimes resulted in users not receiving the best offer and denied influencers their commissions. NordVPN sent a $35 commission to Honey Extension, while the original affiliate received nothing.
Influencers Impacted
Influential marketers like MrBeast, PewDiePie, Linus Tech Tips, and MKBHD accused Honey of losing to them in “last-click attribution.” Honey receives the commission as the extension sends it to that account, no matter whether it applied a discount or not.
In response to these allegations, Honey Extension claims it adheres strictly to industry standards and practices, incorporating last-click attribution. PayPal has not responded to the restriction of access to the coupon codes.
Conclusion
The Honey Extension scam has raised significant concerns about transparency and fairness in the influencer marketing space.
Honey and PayPal will address these issues and make changes to protect both users and influencers as the investigation continues.
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