Following Honey controversy, Google revises Chrome policy for extensions

It seems like Google payed close attention to the whole Honey controversy which as sparked a significant change in Google’s policy for Chrome extensions. For those unaware, Honey was accused of swapping out affiliate links to siphon revenue from content creators. This controversy has led Google to revise its affiliate ads policy, aiming to protect users and ensure transparency in how extensions handle affiliate marketing.

Honey, owned by PayPal, is a browser extension that automatically applies coupon codes at checkout to help users save money. However, it was found replacing affiliate links with its own, effectively taking commission that would have gone to influencers or content creators who originally shared the links.

The accusations gained traction when YouTuber MegaLag released a video detailing how Honey’s extension works behind the scenes. Another YouTuber, Legal Eagle, even filed a lawsuit against PayPal over these alleged practices. 

In response to this controversy and to prevent similar issues in the future, Google has updated its affiliate ads policy for Chrome extensions. The new policy, posted recently, sets strict guidelines for how extensions can handle affiliate links, codes, or cookies.

According to the updated policy, any affiliate program must be clearly described in the extension’s Chrome Web Store page, user interface, and before installation. Moreover, affiliate links can only be included if they provide a direct and transparent benefit to the user, related to the extension’s core functionality. Extensions are not allowed to inject affiliate links without the user’s action or without offering a tangible benefit.

For instance, inserting affiliate links without providing any discount, cashback, or donation to the user is prohibited. Also, extensions cannot continuously inject affiliate links in the background without the user’s knowledge or action.

This policy change is significant for both users and content creators. For users, it ensures that extensions are transparent about their use of affiliate links and that they provide actual benefits. For creators, it protects their affiliate revenue from being unfairly diverted by extensions.

During the peak of the controversy, the extension had reportedly lost millions of users and there were reports of it vanishing from the Chrome Web Store in certain regions. Additionally, some even complained about the extension reinstalling itself on Firefox.

With Google’s new policy in place, there is hope for a more transparent and fair ecosystem for both users and creators. It’s a win-win for us, not so much for platforms like Honey!