Summary
How Honey Browser Extension may expose users and affiliates to financial cybercrime, privacy and information security risks
Proving once again the adage that “If a product is free, you are the product”, Investigative Youtuber MegaLag exposes the deceptive practices of Honey, where owner PAYPAL is accused of ripping off customers. accused of ripping off customers.
Many of you have probably heard of Honey. It promises to scour the internet to find the best coupons you can use for whatever you are purchasing. As spoiled by the title, this isn’t exactly what is happening.
Investigative Youtuber MegaLag, who has in the past exposed the deceptive marketing behind Glasses for the Color Blind, recently released part 1 of a series of videos intended to dig deeply into how Honey makes its money.
What is Honey for consumers, affiliates and the influencer in 2025?
Honey is designed to help online shoppers save money by automatically applying the best available coupon codes at checkout. It was acquired by PayPal in January 2020 for $4 billion, and since then, it has grown significantly in popularity thanks to being promoted by several high-profile influencers, including MrBeast and Marques Brownlee.
With its free extension, it incentivises shopping by allowing users to earn credit for the sale. This reward system called Honey Gold encourages consumers to utilize the platform for their shopping needs, effectively changing their spending behaviors. As users download the Honey Chrome extension, they become part of a digital ecosystem that promotes savings and rewards.
Some critics question the ethics of data collection and the implications for user privacy. Regardless, Honey capitalizes on the desire for savings, and its extension works seamlessly to integrate with the shopping experience, making it a valuable tool for savvy shoppers seeking to maximize their budgets.
Honey claimed it would find every available coupon code and apply them during checkout to save customers from having to manually search for the coupons themselves. Unbeknownst to the customers, Honey also quietly replaced affiliate cookies with their own affiliate cookies, stealing affiliate money from marketers whose leads use Honey.
Not only does the Honey browser extension scam pull off this sort of fraud with affiliate money, they also don’t find coupons on purpose wasting the customers time and money. Stores that partner with Honey do so because it allows them to trick customers into thinking they are getting the best deals when they aren’t. Keep in mind other offerings also do similarly shady things, an example being the Karma extension.
Honey is unfortunately not the only Affiliate stealing trick Paypal uses, Honey Gold now known as PayPal Rewards also engages in similar affiliate stealing behaviour by promising customers cashbacks.
This affiliate stealing behavior was known about for years as can be seen by this post and this post by a Linus Tech Tips employee. But unfortunately the message didn’t reach the customers themselves resulting in small bloggers and creators losing out on affiliate money for years that could have gone into supporting their craft.
Honey Browser Digital Fraud, Cybersecurity and Financial Cybercrime Risks
The Honey scandal has exposed significant cybersecurity risks that extend beyond financial losses. According to a 2024 report by Spin.AI, extensions like Honey can pose serious security threats through data collection, progressive malicious behaviour, and inadequate vetting processes 1
The extension’s broad permissions, which include the ability to “read and change all your data on the websites you visit,” create potential vulnerabilities that could be exploited if the extension were to be compromised.
The CyberSec Guru reports that Honey’s data handling methods have come under scrutiny, as the extension collects a variety of user information, including personally identifiable information, financial data, and browsing history.
Financial Losses attributable to Honey
While specific losses attributable to the Honey Loyalty program are difficult to quantify precisely, recent data and allegations suggest significant economic impact on content creators and the e-commerce ecosystem. Here’s an overview of the potential implications:
Impact on Content Creators
Content creators and influencers appear to be the most directly affected by Honey’s alleged practices:
- A single example provided in the lawsuit shows Honey potentially diverting a $35.60 commission from a content creator while only providing the consumer with a $0.89 reward
- This discrepancy suggests that for every $1 in rewards given to consumers, Honey could be diverting up to $40 in commissions from content creators.
Scale of Impact
The potential scale of these losses is substantial:
- Honey reportedly has 17 million users as of January 2025 1
- If each user made just one purchase per month using Honey, and the average diverted commission was $35, the total annual loss to content creators could theoretically reach:17 million users * $35 * 12 months = $7.14 billion per year
While this is a simplified calculation and actual figures may vary, it illustrates the potential magnitude of the issue.
Comparative Table: Consumer Rewards vs. Potential Creator Losses
| Purchase Amount | Consumer Reward (Honey Gold) | Potential Creator Commission Loss |
|---|---|---|
| $95 | $0.89 | $35.00 |
| $100 | $0.94 (estimated) | $36.84 (estimated) |
| $500 | $4.68 (estimated) | $184.21 (estimated) |
This table illustrates the stark contrast between the minimal rewards offered to consumers and the potentially significant losses for content creators, based on the reported figures.While the full extent of financial losses due to the Honey Loyalty program remains to be determined, these figures and allegations suggest a significant redistribution of affiliate marketing revenues. The ongoing lawsuit and investigations may provide more concrete data on the actual financial impact in the near future.
Coupon Impact on Shopping Behavior and Spending – statistics
Honey, owned by PayPal, has significantly impacted online shopping behavior and spending patterns. As we approach 2025, content creators and YouTubers increasingly promote such tools through affiliate programs.
Honey has indeed significantly impacted online shopping behaviour and spending patterns. Here are some credible statistics and data points that complement the narrative:
User Base and Growth
As of 2025, Honey’s coupon user base has seen significant changes:
- Honey experienced a substantial loss of approximately 3 million Chrome users in late 2024 due to exposed controversial tactics 2
- Despite this setback, Honey still maintains a considerable user base, with estimates suggesting over 17 million members globally, with 1.5 million in Australia alone
- 65% of new Honey members are between the ages of 18 and 34 1
- Nearly 2/3 of Honey members have an average household income of US$100,000+ 1
Example Impact on Sales and Conversions
- A high-fashion Australian retailer partnering with Honey Gold achieved 1:
- 164% increase in sales value
- 10% increase in Average Order Value
- 139% uplift in conversions
- 6% decrease in cart abandonment
User Savings and Engagement 9
- Honey states that users receive average annual savings of $126 on their online purchases. The average discount rate per transaction is 17.9%
Mobile Adoption
- Honey reported over 320,000 Australian visitors to their mobile site every month 1
PAYPAL (Honey) Market Size and Potential 4
- The online coupon market in the U.S. reached approximately $3 billion in 2021
User Behavior and Loyalty 2
| Factor | Statistic | Impact on Honey |
|---|---|---|
| Price Comparison | 91% of consumers regularly compare prices across 3+ websites | Increased pressure to remain competitive |
| Consumer Loyalty | Only 30% of consumers are loyal to one platform | Challenges in customer retention |
| Price Sensitivity | 75% abandon carts if a better deal is found | Higher demand for competitive pricing |
| Switching Behavior | 61% willing to switch for better rewards | Need for continuous innovation |
| Information Access | 85% research online before purchasing | Higher expectations for deals and savings |
Recent Controversies and User Loss 4
- In late 2024, Honey reportedly lost 3 million Chrome users after questionable practices were exposed
What now for PayPal and the Honey Browser Extension?
The team behind Honey has gone on to make a new offering called Pie, which is an adblocker that claims you can use it to earn a passive income. They’ve also released Pie Shopping, which is a browser extension that claims it will automatically apply coupon codes. Of course it would be a terrible idea to use Pie not only because of the dodgy team and the dodgy premise, but also because it isn’t uBlock Origin. A topic we will eventually cover in the near future.
Meanwhile Honey itself is being sued by Youtuber Lawyer LegalEagle, who is filing a class action lawsuit against PayPal on behalf of all creators and businesses who have been harmed by Honey and by extension PayPal’s business practices. LegalEagle aims to sue for damages so that creators and businesses may be reimbursed and is filing an injuction to stop these practices in the future. Anyone who believes they may have been harmed by Honey’s business practices should see the video and contact the lawfirm LegalEagle represents.
MegaLag the creator of the whistleblowing video, has only released part 1 of the video series covering Honey. Previews of the next video suggest businesses themselves are harmed in some way, possibly through fraudulent coupons.
This incident with Honey shows that even the most benign looking product could be hiding some deep terrible secret. Unfortunately, those of us on a tight budget will need to use free products so we can keep the lights on. Do you know which products to trust though? If you join our newsletter, we can help recommend software that is both cheap and safe.
Questions and Answers
What is the PayPal Honey Browser Coupon Extension and how does it work?
The PayPal Honey Browser Extension is a popular browser extension designed to help online shoppers find coupon codes and discounts. By analyzing prices and affiliate links, it aims to provide the best deals during the checkout process. When you install this extension, it automatically searches for available coupon codes and applies them to your purchases, potentially saving you money. However, it is important to be aware of its connection to PayPal, as it is owned and operated by the company. This raises questions about data privacy and security for users.
What are the potential Honey Browser Extension Scams?
While the Honey Browser Extension can be a useful tool, there have been reports of various scams and fraudulent activities related to it. Some users have encountered deceptive ads that appear to be linked to Honey, which can lead to fraud and financial cybercrime. Additionally, there are instances where fake influencers promote misleading affiliate programs under the guise of offering Honey Gold rewards, leading shoppers to unknowingly engage in manipulation that benefits the affiliate without providing any real value to them.
How can I identify a scam involving the Honey Browser Extension?
To identify potential scams, look for signs such as unverified influencers promoting Honey’s features in a suspicious manner, or browser extensions that claim to be affiliated with the official Honey Browser Extension but do not have a credible source. Additionally, be wary of offers that seem too good to be true, like excessive cashback or discounts. Always verify the authenticity of the coupon codes and check the official PayPal website or Honey for confirmation.
What should I do if I suspect I have fallen victim to a Honey-related scam?
If you suspect that you have been a victim of a Honey Browser Extension scam, it is crucial to take immediate action. First, remove the browser extension from your browser.