January 14, 2025
Definition of a “Scam”
Before we dive in, let’s clarify what we mean by “scam.” In general usage, a scam refers to a scheme designed to deceive people in order to gain something of value—such as money, personal data, or other benefits—through misrepresentations or other fraudulent means. Whether or not something qualifies as a “scam” often depends on the intent behind the actions, the transparency of the parties involved, and whether customers or creators are being misled or harmed.
Recent YouTube Claims: MegaLag’s Video
The following is an overview of MegaLag’s recent YouTube video discussing his investigation into the popular coupon browser extension Honey (owned by PayPal). You can watch MegaLag’s video and judge for yourself here:
MegaLag on YouTube
Below are some of the main points MegaLag raises in his multi-part series. Note that these claims and conclusions are based on his own research and opinions; no definitive legal judgment or finding of wrongdoing has been issued by any court or regulatory authority. We encourage readers to keep an open mind and do additional research.
1. Allegations of ‘Affiliate Hijacking’
- Replacing Affiliate Links
According to MegaLag, Honey may replace an influencer’s or content creator’s affiliate link with Honey’s own link at checkout. The video claims that when a user clicks on an influencer’s product link and proceeds to purchase, Honey allegedly “overrides” the original referral link when it pops up to apply coupon codes or “Honey Gold” rewards. As a result, Honey (or PayPal) might receive commission credit instead of the influencer who referred the buyer. - Sneaky Pop-Up
MegaLag says Honey’s interface discreetly opens a mini browser tab in the background to simulate a “last click.” Since most affiliate programs use last-click attribution (the last link clicked before purchase receives the commission), Honey’s pop-up can interfere with the influencer’s original affiliate cookie. - Influencers Potentially Losing Revenue
This override could, in theory, cost creators and bloggers significant income, especially if they rely heavily on affiliate commissions. MegaLag points out how large-scale creators—some of whom even promoted Honey—might inadvertently have lost out on affiliate revenue to Honey’s tracking.
Quote from MegaLag on this issue:
“Once honey popped up and we clicked ‘Apply Discounts,’ Honey came in, removed Linus’s affiliate cookie, and replaced it with their own.”
2. Conflicting Promotional Messages: ‘Best Deals’ vs. ‘Partner Control’
- Honey’s Public Claim
Many of Honey’s sponsored advertisements feature influencers saying Honey scours the internet for the best possible coupon code. If Honey finds a code, the user supposedly benefits by saving money. If Honey finds no valid code, it implies there is no better discount elsewhere. - Partnering Businesses’ Control
MegaLag discovered partner-facing FAQs and interviews indicating that businesses can control the coupon codes that appear within Honey. This potentially means Honey might not actually give you every best-available code—it may only serve codes approved by the partner store.
Quote from MegaLag regarding controlled discount codes:
“Honey wasn’t finding you the best deals possible; they were intentionally withholding them from you for their own financial gain.”
3. Honey Gold / PayPal Rewards Concerns
- Cashback Incentive
Honey Gold (now called PayPal Rewards) offers users a small percentage of “points” when they click a button at checkout. According to MegaLag, these points are simply a fraction of the affiliate commission that Honey captures by taking the “last click.” - Minimal Sharing of Commission
In one test, MegaLag alleged that Honey effectively took a $35 affiliate commission and only rewarded him (as a “customer”) a negligible $0.89 worth of points.
Quote from MegaLag on the ‘cashback’ structure:
“Honey poached a $35 commission for doing nothing and rewarded me a grand total of $0.89.”
4. Responses from Influencers and Honey
- Linus Tech Tips (LTT) Example
One of the largest tech channels on YouTube, Linus Tech Tips, once promoted Honey but later ceased sponsorship. An LTT team member indicated that discovering Honey’s affiliate-replacing behavior was why they ended the partnership. According to the same statements, efforts to get Honey to change its practices were unsuccessful. - Honey’s Stance
Publicly, Honey (now under PayPal) positions itself as a tool to help consumers save money. MegaLag mentions some communications from Honey that suggest if it is the “last program used while shopping,” Honey is likely to receive credit for the sale. MegaLag characterizes this as a straightforward admission of how the “last click” system works in Honey’s favor.
5. Broader Impact and Final Considerations
- Impact on Consumers
According to MegaLag’s video, some consumers may not always get the absolute best discount code, especially if a partnering store chooses to withhold better codes. Others might get good deals in some situations, but there is alleged inconsistency in how codes are applied. - Impact on Small Creators
For creators who rely on affiliate sales, the possibility of Honey overwriting links can be especially damaging. MegaLag suggests it has likely cost content creators (large and small) millions of dollars in commission revenue over the years. - Larger Ethical Questions
Even if you, as a consumer, do save money from time to time using Honey, MegaLag’s video points out that the method by which these savings are offered could be seen as deceptive. Honey benefits from data collection, affiliate overrides, and partnering businesses controlling which codes are shared.
So, Is Honey a Scam?
Until any legal action is taken, the question of whether Honey is a “scam” is ultimately a personal judgment call based on the evidence laid out and how strongly you feel about the alleged practices:
- Some might say it’s a helpful browser extension that sometimes provides discounts—even if it doesn’t always find the best ones. They might not mind if affiliate commissions are redirected, or they might not be aware of the behind-the-scenes affiliate dealings.
- Others might argue that overriding influencer links, allegedly misleading the public about “best deals,” and letting partner stores control coupon codes could be deceptive enough to label Honey’s practices as unethical or scam-like.
As MegaLag’s video outlines various claims—ranging from affiliate fraud to possible privacy concerns—it’s worth doing your own research, especially if you’re a creator relying on affiliate income or a consumer who wants maximum savings.
In the end, only you can decide whether these practices make Honey a dealbreaker or not. If you’re comfortable with the alleged behind-the-scenes affiliate link swapping and the possibility that Honey might not always find the top discounts, you may decide to keep using it. If you feel uncomfortable with these claims and believe it’s deceptive, you can uninstall Honey from your browser.
Disclaimer:
All the information above is based on MegaLag’s publicly posted video and should not be taken as legal or financial advice. Honey (PayPal) has not been legally found guilty of wrongdoing by any court based on these allegations. We recommend reviewing multiple sources and, if desired, consulting with a professional for further clarity.
