What is Honey scam controversy? Browser extension promoted MrBeast, others accused of ripping off customers | Trending

In a serious allegation, a YouTube creator accused PayPal’s browser extension, Honey, of misleading both consumers and influencers. In a video titled “Exposing the Honey Influencer Scam,” posted on December 21, YouTuber MegaLag claims that Honey hijacks affiliate links that pay influencers for promoting products, offers limited coupon options, and publishes misleading advertisements. The video, which is part of a three-part series, has amassed over 9.4 million views. Honey is a browser extension that helps users find and apply coupon codes during online shopping.(X) In the video, MegaLag describes what he believes is a deceptive practice, stating that he would not be surprised if this situation turned out to be one of the “most aggressive, shameless marketing scams of the century.” However, PayPal has responded to these accusations, defending Honey’s business model and denying any fraudulent behaviour. What is Honey?Honey, a browser extension that helps users find and apply coupon codes during online shopping, was acquired PayPal in 2020 for approximately $4 billion. Originally launched in 2012, Honey claims to help users save money on their online purchases automatically applying the best available coupons at checkout. Following PayPal’s acquisition, the tool has grown significantly, with PayPal launching PayPal Rewards to encourage further use of Honey. Users can earn points when using the extension, which can later be redeemed for cashback, PayPal credits, or gift cards. Take a look at the video: However, MegaLag criticised this rewards program, calling it a “lame cashback scheme.” He also shared a comparison of his earnings when using his affiliate link versus =PayPal Rewards. MegaLag showed that using his own affiliate link to buy a NordVPN subscription worth $95, he earned around $35 in commission. In contrast, using PayPal Rewards for the same purchase only netted him 89 cents in cashback. The video also addressed Honey’s alleged limited coupon offerings. MegaLag argued that he often found better deals on other coupon websites like RetailMeNot when Honey claimed no coupons were available. PayPal, in response, clarified that the coupons Honey provides are sourced from a mix of merchant partnerships, deal networks, and user submissions. Ultimately, PayPal emphasised that it is up to merchants to decide which coupons Honey presents to consumers. Also read: Malaysian woman loses over ₹4 crore in decade-long love scam without ever meeting scammer Another point raised MegaLag concerned Honey’s past advertising practices. He accused Honey of misleading consumers with ads that suggested the platform finds every available coupon online, implying that using Honey would eliminate the need for shoppers to search for discounts themselves. In 2020, the National Advertising Division (NAD) launched an inquiry into a Honey ad that claimed it could find “every working code on the internet.” However, after the inquiry was opened, Honey informed the NAD that it was already discontinuing the advertisement for “business reasons” and agreed to permanently stop running the misleading ads. Despite these concerns, PayPal maintains that Honey follows industry standards and practices, including “last-click attribution,” a common method used affiliate marketing programs. Amy Bonitatibus, PayPal’s Chief Corporate Affairs and Communications Officer, defended the tool, stating that Honey is free to use and helps both shoppers save money and merchants increase sales reducing cart abandonment. While MegaLag’s video has sparked a lot of attention, with millions of views and significant debate, PayPal has yet to acknowledge any wrongdoing. As the situation unfolds, it remains to be seen how these allegations will affect Honey’s reputation and its place in the competitive world of online shopping tools. Also read: All about the new wedding invite scam on WhatsApp. Here’s how to avoid being hacked