Is the Honey Extension a Scam? Exposing PayPal’s ‘Free Coupon’ Tricks and Hidden Affiliate Hijacking

Introduction

In the world of online shopping, browser extensions offering quick discounts and coupon codes have become increasingly popular. At the forefront has been Honey, an extension widely promoted by top influencers and even mainstream brands. However, a recent video investigation by Megalag—titled “Exposing the Honey Influencer Scam”—uncovered a web of deceit involving affiliate fraud, deceptive marketing, and potentially millions in stolen commissions.

In this article, we’ll break down the key claims made by Megalag, explore how Honey allegedly overrides affiliate cookies, and discuss why both content creators and consumers need to be aware of these practices.

 

 

What Is the Honey Extension?

Honey is marketed as a free browser extension that automatically applies coupon codes at checkout, purportedly saving users money on their online purchases. Over the years, Honey gained massive popularity through extensive influencer sponsorships and endorsements from high-profile YouTubers. Its features include:

• Automatic Coupon Application: Honey scans for available coupons and applies them at checkout.
• Honey Gold/PayPal Rewards: A cashback-style system where shoppers earn points on select purchases.

On the surface, it seems like a win-win: users save money, influencers earn commissions for referrals, and Honey collects a slice of the sale. However, Megalag’s investigation suggests the reality is much murkier.

The Alleged Scam: Affiliate Cookie Hijacking

Last-Click Attribution

One key issue revolves around last-click attribution, a common model in affiliate marketing. Under this model, whichever link the customer clicks most recently (before purchasing) is considered responsible for the sale, meaning that entity gets the commission.

• Influencers typically share an affiliate link. If a user clicks it and makes a purchase, the influencer earns a commission.
• Honey allegedly uses clever pop-ups or discount prompts at checkout to override the influencer’s affiliate link cookie, replacing it with its own.
• As a result, Honey (owned by PayPal) appears to have referred the buyer, thus pocketing the commission—even if it provided no actual discount to the user.

This maneuver, sometimes referred to as “cookie stuffing” or “cookie hijacking,” can cause influencers—especially smaller creators—to lose out on a significant portion of their income.

 

 

How Honey Allegedly Misleads Shoppers

While Honey’s advertisements claim it finds “the best deals” automatically, Megalag’s investigation revealed that businesses partnering with Honey can restrict the coupon codes displayed to consumers. If a business opts not to share a certain coupon code with Honey, that code will never appear—even if it’s publicly available.

In essence, Honey might not always give you the best possible discount. Instead, it may present only codes allowed by the partner store. This practice can mislead shoppers, making them believe no other discount options exist.

Honey Gold and the Cash-Back Dilemma

Honey’s rewards feature—often called “Honey Gold,” now rebranded as PayPal Rewards—promises a small cashback bonus. The video highlights that while Honey might earn a hefty commission (e.g., $35) on a sale, it only passes a tiny fraction to the user (e.g., $0.89).

Thus, while consumers might see a modest return, Honey keeps the lion’s share of the commissions—often at the expense of the influencer who originally recommended the product.

Impact on Content Creators and Influencers

Megalag’s findings suggest large creators, like Linus Tech Tips, eventually discovered this issue and terminated their sponsorship deals with Honey. However, most influencers remain unaware that the extension they promote could be siphoning off commissions behind the scenes. This is particularly harmful to small creators, who rely heavily on affiliate income.

The Bigger Picture

The alleged deception involves more than just stolen commissions. If the extension prioritizes store-approved coupon codes, consumers might miss out on genuine savings. Meanwhile, the widespread promotional campaigns touting Honey as “the best deal-finder” could be viewed as misleading or false advertising.

What You Can Do

1. Check Your Cookies: If you’re using Honey, pay attention to your browser’s tracking cookies when you make a purchase.
2. Use Trusted Coupon Sources: Instead of relying solely on Honey, try manual searches or reputable coupon websites to verify you’re getting the best discount.
3. Support Honest Creators: If you want to ensure your favorite influencer gets credit for referring you, be mindful not to click additional pop-ups at checkout.
4. Stay Informed: Keep up with investigative reports and community discussions around browser extensions to avoid falling for future scams.

 

Conclusion

The revelations from Megalag’s “Exposing the Honey Influencer Scam” cast a harsh light on Honey’s business practices. From allegedly overriding affiliate links to possibly withholding genuine coupon codes, Honey’s model might harm both consumers and content creators. While the extension paints itself as a champion of savings, Megalag’s investigation suggests a far more complicated reality.

Credit:

• Full credit to Megalag on YouTube for the detailed investigation and original video.

Disclaimer: The claims and allegations discussed in this article are based on Megalag’s investigation and video content. We encourage readers to review all available information and form their own conclusions.

Final Thoughts

As we navigate an ever-evolving digital marketplace, transparency is key. Before installing or endorsing any browser extension, conduct thorough research to ensure you’re truly benefiting as a shopper—and that creators you wish to support are not inadvertently losing revenue.