(NewsNation) — Browser extension Honey — which promises to find and automatically apply coupons for users — has misled consumers and the influencers it partners with, a YouTube creator alleged.
In the the 23-minute video “Exposing the Honey Influencer Scam” by user MegaLag, the PayPal property is accused of abusing the affiliate link system for its own profit rather than the creators with whom it partners.
And it partners with plenty — including Mr. Beast and over a thousand other YouTube channels, per Yahoo Tech.
What is an affiliate link?
The business model of affiliate links is as follows:
A creator recommends a product and links to it
Their followers check out the item(s)
Referred users purchase something
Creator earns commission for referrals
The affiliate link data is often scored in the browser’s cookies, which saves link data and can help a creator earn on the sale, even if the product sits in someone’s cart for a few days.
Affiliate links run rampant on social media sites TikTok, Instagram and YouTube, where influencers aim to not only advertise products — but make profit off sharing links.
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How does Honey use affiliate links?
Oftentimes, Honey pairs with internet personalities, sponsoring influencers and YouTube creators’ content in exchange for ads. Despite content creators sending their viewers to download Honey, MegaLag claims Honey defrauds them.
According to the video, using the Honey extension while checking out overrides the affiliate cookie that is stored, instead pushing the commission to its parent company, PayPal.
The commission switch happens even if Honey doesn’t find a coupon or deal, an independent Snopes fact check found.
Posts from Honey’s official social media accounts confirm this, too, with the extension’s FAQ page asserting that it makes money when “a member uses Honey to find available savings or to activate PayPal Rewards.”
“I wouldn’t be surprised if this ends up going down as one of the most aggressive, shameless marketing scams of the century,” the New Zealand-based YouTuber said in the video.
Is Honey a scam?
The video also takes aim at Honey’s past advertising, which promises to find users the best discounts.
User MegaLag shows multiple examples of the browser extension not displaying the best deals possible, which Snopes recreated successfully.
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However, the extension’s terms of use agreement covers this.
“While we try and find you the best available discounts and coupons, and to identify low prices, we may not always find you the best deal. PayPal is not responsible for any missed savings or rewards opportunities,” it reads in part.
“PayPal does not promise or guarantee that the product details, prices, coupon availability or other service terms, rates or rewards offered by any particular advertiser or other third party via our Service are the best prices, best terms or lowest rates available in the market.”
So, while Honey isn’t a scam, it doesn’t always do what its users expect, and some of its practices may hurt the very creators with whom it frequently partners.
