American lawyer and YouTuber Devin James Stone aka "LegalEagle" uploaded a new video covering the recent controversy involving Honey, the browser extension. Honey is currently facing scam allegations after YouTuber MegaLag released an investigative video claiming how it interjects affiliate creators' codes and takes the commission for itself.
In addition, LegalEagle has posted a video titled I'm Suing Honey, in which he revealed he was filing a class-action lawsuit against the PayPal-owned company.
"Creators are saying Honey is a scam. They believe Honey steals from creators. So on behalf of creators everywhere, I've filed a class-action lawsuit to stop it."
"There's no such thing as a free lunch" - LegalEagle slams Honey following "scam" allegations against the browser extension
LegalEagle uploaded an eight-minute-long video about Honey, criticizing the browser extension for its alleged unethical practices. Specifically, Honey is accused of replacing creators' affiliate links with its own when users click "Apply Honey," depriving creators of their rightful commissions.
According to LegalEagle, he stated that Honey is essentially stealing from YouTubers' and TikTokers' pockets:
"It's free money they say. But we believe that nothing could be further from the truth. Unfortunately, there's no such thing as a free lunch. We believe that money came right out of the pockets of your favorite YouTubers, TikTokers, Instagramers, podcasts, and bloggers."
LegalEagle also shared a screenshot of a lawsuit, alleging that Honey (owned by PayPal) exploits "last click attribution" to unfairly redirect commissions to itself:
"Defendant takes advantage of last click attribution by inserting a Honey pop-up at checkout for each customer that has installed the Honey browser. If the customer clicks on the Honey link after clicking on Plaintiff's affiliate link, then Defendant's affiliate cookie replaces Plaintiff's."
According to the lawsuit, the plaintiff is seeking both punitive and compensatory damages as permitted by law. Additionally, they are pursuing legal action to end Honey's alleged practices in the future.
Tech YouTuber Marques Brownlee aka MKBHD has also criticized Honey. He was among the affiliate creators who previously collaborated with the browser extension. Other notable creators who have worked with Honey include MrBeast, Linus Tech Tips, and Mark Rober.
At the time of writing, neither Honey nor PayPal have released any official responses.