PayPal’s Honey app, a widely used browser extension, has come under fire for alleged fraudulent practices targeting both users and influencers. The accusations made by YouTuber and tech investigator MegaLag in a December 21 video titled “Honey Influencer Scam Exposed” have amassed more than 13 million views, sparking widespread controversy.
MegaLag alleges that Honey exploited a practice known as “last-click attribution,” whereby it redirected affiliate commissions intended for influencers to its own account. “PayPal did not refer the customer to the store or promote the products, the influencer did,” MegaLag stated. The video also claims that Honey intentionally prioritized less valuable discount codes offered by businesses, depriving users of better deals.
The revelation sparked outrage in the creative community. Influencer Austin Evans, who has 5.61 million subscribers, denounced Honey in a Dec. 23 video, saying, “I will never work with Honey again under any circumstances.” Likewise, Hank Green criticized PayPal’s defense of Honey’s corporate practices, calling it a system of “theft and lying.”
PayPal, which acquired Honey for $4 billion in 2020, defended the service, stressing that it adheres to “industry rules and practices, including last-click attribution,” and claiming that Honey continues to provide savings to shoppers.
However, the backlash was swift. Honey’s user base reportedly dropped from 20 million to 17 million within weeks of the reveal, a decline confirmed by Newsweek using the Wayback Machine.
This is not the first time honey has faced scrutiny. Linus Media Group severed its partnership with the service in 2022, citing concerns about its affiliate practices. Calls for legal action have also emerged, with some speculating about a potential class action lawsuit against PayPal and Honey.
This controversy highlights the growing role of investigative content creators in exposing corporate malpractices. Comparisons have been made between the trial of Johnny Depp and Amber Heard, with an emphasis on the power of social media platforms to hold companies accountable.
MegaLag hinted at more revelations, promising a follow-up video that delves deeper into what it described as “the dark side of the PayPal scam.” As public and legal scrutiny intensifies, the upcoming show is expected to shed additional light on Honey’s practices and its broader impacts on the affiliate marketing industry.