A class-action lawsuit claims that Honey, a browser extension owned by PayPal, deceives users into paying money for supposed rewards and benefits.
The Honey browser extension helps users save money online by automatically applying relevant coupon codes at checkout. Notwithstanding, YouTuber MegaLag dubbed Honey a “blatant rip-off”, accusing it of “siphoning profits from influencers”.
MegaLag claimed that when a YouTuber or content creator uses an affiliate link to promote a product and viewers have installed the Honey browser extension, the software may stealthily swap its own affiliate link for the original one, even if no discounts are offered by Honey. When a user completes a purchase through Honey’s platform, the affiliate commission goes directly to Honey, not the merchant or product creator.
Now Devin Stone, a Washington, D.C.-based filmmaker, regularly uploads movies to his straightforward YouTube channel. He alleges that the corporation “systematically diverts commissions from rightful earners, thereby undermining the entire online marketing system.”
“With biting irony, PayPal recruits content creators and influencers to promote the Honey browser extension to their followers, thereby allowing it to siphon off the very commissions that these same creators rely on for financial sustenance,”
PayPal has responded to our inquiry. The corporation vehemently denies the claims, asserting its ability to defend itself robustly. Additionally, it emphasizes that Honey adheres to industry-standard trade practices and employs a last-click attribution method, wherein the final touchpoint receives sole credit for a purchase.
Notably, Stone highlighted the lawsuit’s significance, underscoring Honey’s effective advertising and marketing strategies. The company’s creators actively promoted the browser extension to their followers, leading audiences to install it, which Stone likened to a “sleeping leech” in their browsers, poised to facilitate transactions at any moment.
“After this incident, the creator’s reputation suffered irreparable damage, rendering all subsequent sponsorships, affiliate relationships, and commercial opportunities dubious in value.”
Stone stated that he is seeking class certification to support his lawsuit.
