For years, the Honey browser extension has been the darling of online shoppers and influencers alike. Promising to save users money by finding and applying the best discount codes at checkout, it was a win-win for consumers and creators. But thanks to the investigative prowess of YouTuber MegaLag, the sweet promises of Honey may have been nothing more than sticky traps.
Launched in 2012, Honey quickly gained traction, boasting features that seemed to solve a universal problem: finding the best deals online. By 2014, it had over 900,000 users. Its potential caught the eye of PayPal, which purchased it in 2020 for a staggering $4 billion, something that Amazon was quick to aim a dig at. Promoted by some of YouTube’s biggest names — Linus Tech Tips, MKBHD, and MrBeast among them — Honey became a household name, positioned as the go-to tool for online savings.
Honey’s pitch was simple: Install the free extension, and it would scour the web for coupon codes, applying the best one for your cart. But as MegaLag’s investigation reveals, the extension isn’t always working in your best interest.
Instead of applying the largest discount available, Honey often prioritizes specific codes from its business partners. For example, a store might offer both a 30% discount code and a 10% one, but Honey could push the smaller discount if it aligns with its agreements. The result? Users think they’re saving, but they could have saved more by searching manually.
Honey accussed of deceptive affiliate practices
Here’s where things get messy for creators. Many influencers who promote Honey rely on affiliate marketing for revenue. They’ll share links to products, and when a follower makes a purchase, the creator gets a small commission. It’s a symbiotic relationship that helps creators sustain their content.
But MegaLag’s findings show that Honey overrides affiliate links at checkout, replacing the creator’s cookie with its own. The commission? Gone. Honey takes the credit, leaving creators high and dry. Imagine promoting a tool that directly undercuts your income — it’s a bitter pill to swallow.
Social media has been abuzz with criticism since MegaLag’s video dropped. “If you’re using the ‘Honey’ browser extension, remove it. This is predatory and bad for the customer, the brand, and content creators promoting products,” one user posted on Threads. Another pointed out, “Remember when Amazon called Honey a security risk? Turns out they might not have been exaggerating.”
View on Threads
This isn’t the first time tech products endorsed by influencers have sparked controversy. From VPN providers embroiled in data scandals to mobile games with exploitative microtransactions, Honey’s story is part of a broader trend of trust-breaking tools capitalizing on influencer marketing.
The Honey saga is a cautionary tale for both consumers and influencers. For shoppers, it’s a reminder that convenience can come at a cost. Conducting your own research and double-checking discount codes might take a few extra minutes but can save you more in the long run. For creators, it’s a lesson in due diligence. Understanding how sponsored tools impact your audience and your revenue is crucial.
PayPal and Honey have yet to respond to these allegations, but the damage to their reputation is already palpable considering the video has already has over 3.3M views. Will they address the issues raised by MegaLag’s investigation, or will they stay silent and hope the controversy blows over?
In the meantime, MegaLag’s findings serve as a wake-up call for the online shopping ecosystem. The allure of easy savings may be tempting, but as the saying goes, “If it seems too good to be true, it probably is.”
Featured image: MegaLag’s video thumbnail / YouTube