Unpacking the Honey Browser Extension Scam

In recent weeks, the online community has been buzzing with revelations surrounding Honey, the widely recognized browser extension. Known for promising to find the best coupon codes during checkout processes, it claims to save users significant amounts of money on online purchases.

However, what’s surfaced is not merely a typical consumer complaint, but a much more serious allegation: that Honey’s business model involves dubious practices, undermining both consumers and content creators.

What is Honey?

Honey is a free browser extension that claims to assist online shoppers by automatically applying the best coupon codes during checkout. With an impressive user base of 17 million in the Chrome extension store alone, it stands as one of the most popular tools of its kind.

Furthermore, Honey has established itself as a formidable player in the realm of online advertising, sponsoring countless YouTube creators and consequently amassing billions of views through its promotional campaigns.

The fact that PayPal owns Honey and acquired it for approximately $4 billion in 2020 is why many of the YouTube influencers agreed to work with the platform. It also explains the millions of users who have the extension installed on their browsers.

How Honey Works

On the surface, Honey appears to offer genuine value. When users reach a checkout page, they can hit the “Apply Honey” button, prompting the extension to sift through its extensive database of coupon codes.

The aim is to ensure shoppers get the best available discounts, paving the way for a more affordable online shopping experience. However, this widely accepted narrative has been questioned amid the allegations that have recently come to light.

The Allegations Against Honey

The story surrounding Honey’s business practices comes from a recent exposé by a YouTuber known as MegaLag. MegaLag’s YouTube video which has a somewhat creepy thumbnail (we have it featured on this article -it’s a dope attention grabber) of popular influencers like MrBeast, MKBHD, MrWhoseTheBoss, Austin Evans, and LinusTechTips is quite the watch. It highlights two critical and troubling practices that Honey has employed, both of which jeopardize the trust of users and harm content creators who promote Honey’s services.

1. Affiliate Code Poaching

One of the most concerning practices involves how Honey manipulates affiliate codes. In typical affiliate marketing settings, when a creator promotes a product and links to it with an affiliate code, they earn a small commission for each sale made through that link.

However, Honey, as the last step before the transaction is completed, replaces the creator’s affiliate code with its own during the checkout process. This means that while creators drive traffic and potential sales through their work, Honey siphons off the affiliate revenue intended for those creators.

This behavior is not just unethical; it effectively robs creators of their deserved income, putting into question the integrity of the entire affiliate marketing system. As tech YouTuber Austin Evans put it – Honey pays you then steals from your back pocket.

2. Misleading Retail Partnerships

Honey also encourages partnerships with online retailers by suggesting that those retailers can control which coupon codes appear in Honey’s database. Retailers are prompted to prioritize less favorable coupons to Honey users, effectively allowing Honey to dictate which deals consumers see.

This duality means that, while Honey markets itself to consumers as a tool for savings, it simultaneously negotiates with retailers to limit those very savings to enhance its own profit margins. This conflict of interest raises significant ethical concerns about Honey’s marketing claims and its treatment of both consumers and creators.

The saying you can’t have your cake and eat too rings true here. It is contradictory for Honey to work with retailers while promising users the best deal. In a case of transactions, you are either helping users or helping retailers. Working for both is a clear conflict of interest and it means one side is being duped.

The Response from YouTubers

The widespread allegations came as a shock to some creators who had previously partnered with Honey. Some creators are said to still be contractually be working with Honey even now. One YouTube channel, LegalEagle even has a video posted claim that they will be suing Honey. However, it seems most YouTubers were largely unaware of the implications of promoting such a service and now face the challenge of navigating the fallout.

In response, many are revisiting their past partnerships; for instance, MKBHD, who has had his fair share of controversies in 2024, begun the process of removing Honey’s advertisements from his videos, stating that he would have reconsidered his partnership had he been aware of these practices beforehand. He also posted a video “The Honey Scam: Explained” where he detailed the whole story and his involvement.

Linus Tech Tips, who promoted Honey for years, eventually discovered that their partnership was ineffective due to Honey’s tactics undermining affiliate marketing. Upon realizing Honey’s methods, they ceased the collaboration.

Steps to Take as a Honey User

If you haven’t installed Honey as a browser extension, you’re in luck. If you have, this section is for you.

Given the troubling revelations about Honey, here are essential steps both consumers and creators can consider:

  • Uninstall Honey: If you have the Honey extension installed, consider removing it. Doing so can prevent further undermining your favorite content creators. Also, there are other ways to source for discount coupons including the good old Google Search.
  • Spread Awareness: Share information about Honey’s alarming practices with friends, family, and your online community so they avoid the browser extension. Given that Honey boasts of having 17 million users, it is essential to spread the word about their unethical practices. This may also help prevent other platforms from using similar tactics and development of similar schemes.
  • Support Honest Partnerships: Creators should carefully vet their sponsors moving forward, choosing to partner with brands that demonstrate ethical practices that harmonize with their values. The money might be great at first but is it worth it if such a partnership will be the downfall of your brand?

The Bigger Picture

The situation with Honey serves as a cautionary tale for online consumers and content creators alike. It underscores the importance of transparency and integrity in the creator economy, where trust is paramount.

Creators thrive on their relationships with their audiences, and deceptive practices such as those allegedly conducted by Honey risk destabilizing that trust.

  • Impact on Small Creators: The tactics used by Honey can significantly affect smaller influencers who rely heavily on affiliate commissions for their income. Honey’s practices deprive these creators of fair compensation for their promotions.
  • Uninformed Consumers: On the consumer side, users might feel misled by the perception that they are getting the best deals possible, while in reality, they might be disregarding better options that Honey intentionally does not promote. This may make users mistrust other extensions and similar platforms. You may ask what other privacy risks are there from using other browser extensions?

Conclusion

The exposure of Honey’s practices reveals critical ethical concerns in the world of digital marketing and affiliate management. What initially seems to be a generating revenue stream for influencers turns into a sinister effort in undermining trust and exploiting affiliate marketing systems. Both consumers and influencers need to be informed about these realities to make better purchasing decisions and to choose collaborations that truly benefit all parties involved.

Have you used Honey before? How do you feel about the techniques it’s been accused of? If you believe in transparency and fair practices, consider researching the tools you use and raising awareness about ethical marketing practices in your communities. Share your thoughts in the comments below!

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top