Honey’s deal-hunting browser extension is accused of ripping off customers and YouTubers

The PayPal Honey browser extension is, in theory, a handy way to find better deals on products while you’re shopping online. But in a video published this weekend, YouTuber MegaLag claims the extension is a “scam” and that Honey has been “stealing money from influencers, including the very ones they paid to promote their product.”

Honey works by popping up an offer to find coupon codes for you while you’re checking out in an online shop. But as MegaLag notes, it frequently fails to find a code, or offers a Honey-branded one, even if a simple internet search will cover something better. The Honey website’s pitch is that it will “find every working promo code on the internet.” But according to MegaLag’s video, ignoring better deals is a feature of Honey’s partnerships with its retail clients.

MegaLag also says Honey will hijack affiliate revenue from influencers. According to MegaLag, if you click on an affiliate link from an influencer, Honey will then swap in its own tracking link when you interact with its deal pop-up at check-out. That’s regardless of whether Honey found you a coupon or not, and it results in Honey getting the credit for the sale, rather than the YouTuber or website whose link led you there.

Paypal VP of corporate communications Josh Criscoe said in an email to The Verge that “Honey follows industry rules and practices, including last-click attribution.”

MegaLag isn’t the first to make such claims. A 2021 Twitter post advises using Honey’s discount codes in a different browser to avoid it taking the affiliate credit. A Linus Media Group employee also explained in a 2022 forum reply that Linus Tech Tips dropped Honey as a sponsor over its affiliate link practices.

Honey’s convenience has resulted in the extension being recommended widely, including in almost 5,000 Honey-sponsored videos across about 1,000 YouTube channels, according to MegaLag. We’ve even recommended it here at The Verge; now we do not.

Here is Criscoe’s full statement:

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.