What is the Honey browser extension controversy? Details surrounding alleged scam explored as PayPal comes under fire 

YouTuber MegaLag recently claimed that the Honey browser extension is reportedly involved in scamming its users. In a video uploaded on December 22, titled, "Exposing the Honey Influencer Scam," MegaLag alleged that instead of helping users find the best coupon codes online, as per its primary sales pitch, the PayPal-owned app seemingly shows only specific codes.

MegaLag stated that for instance, if an online store promoted by a content creator offers up to a 30 percent discount on a specific product via a discount code, and a 5 percent discount via a different code, Honey will reportedly show only the latter.

He further claimed that the browser extension allegedly works against the influencers who promoted it. Honey seemingly replaces the affiliate cookies that pop up on the checkout page with its own. As a result, the content creators allegedly lose out on their affiliate income for promoting the product and their discount codes in the first place.

In the wake of this now-viral video, Honey and its parent company PayPal are facing backlash. Here are some of the netizens' reactions from the social networking site, X.

“It’s rare that a scam exposure video genuinely shocks me, but this is f**king WILD. Uninstalling @honey right away; it never has any discounts anyway,” a netizen wrote.

“Wrapping my mind around how INSANE this Honey scam is. I vividly remember how 2014 YouTubers would promote it like crazy, to seeing a lot of them getting married or have kids today. Bruh it’s been robbing people for YEARSS. A DECADE!!!!” a user wrote.

“D*mn, so Honey (PayPal) might be the biggest scam in YouTube history? Might even say ‘Internet history.’ All those big a*s influencers might come together for a class lawsuit of 100s of millions,” another user wrote.

“I feel like 1 bajilllion less people would have gotten murked by the Honey scam if they thought for a micro-second as to how Honey would make money off of their business model,” another individual wrote.

A Redditor explains the Honey browser extension scam (Image via Reddit)

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More about the Honey browser extension alleged scam

Honey browser extension is a free-to-use, money-saving tool owned by PayPal. It is marketed to automatically find the best coupon/ discount codes and has millions of users worldwide. Popular content creators including Linus Tech Tips, MKBHD, Marques Brownlee, MrWhoseTheBoss, and MrBeast, have promoted it.

Honey browser extension was founded in 2012 and later went viral after it was leaked on Reddit. By 2014, it has nearly a million users. In 2020, PayPal purchased the company for $4 billion and renamed the app as PayPal Honey.

According to the ongoing controversy first revealed by MegaLag, he states that Honey is a “sophisticated affiliate marketing scheme disguised as a helpful browser extension” and “steals affiliate commissions from influencers.”

Originally, the idea behind the Honey browser extension was that if a discount code leaked, it would continue to ensure that the users get the best and latest deal, despite the seller’s intention.

However, ever since it was bought by PayPal, Honey allegedly began partnering with businesses that seemingly offered browser extension discounts, for instance, “HONEY20” for 20 percent off. However, as YouTuber MegaLag explains, the Honey browser extension would allegedly only promote the 20 percent discount and not other coupon codes with greater savings.

As a result, the customers are reportedly misled. Not only that but MegaLag claimed that Honey allegedly collects user data for potential and targeted advertising, despite not being a direct seller. Additionally, the YouTuber claimed that the Honey Gold rewards program also offers minimal returns.