What is the Honey Extension Scam All About?

It’s being called ‘the biggest scam in YouTube history.’

The Honey Extension, endorsed by top-tier influencers like Marques Brownlee, Linus Tech Tips, PewDiePie, MrBeast amongst many others, promised sweet savings but has left a bitter aftertaste!

Owned by PayPal, Honey is now facing serious legal trouble, with not one, but two class-action lawsuits. Plaintiffs claim intentional meddling with affiliate links, deceiving consumers and stealing from content creators.

What Exactly is the Honey Extension?

Honey is a browser extension that claims to help users find the best discount codes so they can save money on their online shopping. PayPal acquired it in 2020 for a staggering $4 billion and has since endorsed several content creators to promote the tool to consumers.

From the outside, Honey appears to be a win-win. As MrBeast once said, “It’s free money, why wouldn’t you want it?” However, recent revelations suggest that there is more to it, and it’s all very shady.

How Did the Honey Extension Scandal Come to Light?

In December 2024, a YouTuber named MegaLag exposed the scandal with compelling evidence.

He revealed that the Honey Extension was showing coupons from their paid partners (even if better deals were available) and swapping influencers’ affiliate links with their own. This sparked outrage in the influencer community and among consumers who had placed their trust in the extension.

What Has Honey Been Accused Of?

The accusation against the Honey Extension are:

• Affiliate Link Hijacking – Critics claim that Honey has been replacing influencer affiliate links with their own, effectively pocketing the commissions that rightfully belonged to the creators. This means influencers promoting products through their personalised links have potentially lost out on earnings.
• Selective Coupon Display – Honey is also accused of displaying discount codes from paid partner agreements, which might not always offer the best available deal to users, leading to consumers potentially missing out on better savings in favour of Honey’s commercial interests.
• Stealthy Extra Tabs – Users have reported that the Honey Extension secretly opens additional browser tabs during transactions to overwrite affiliate tracking cookies. This further ensures that Honey gets the commission credit instead of the original link holder.

Who’s Been Affected by the Honey Extension Scam?

• Influencers & Content Creators – For influencers, affiliate marketing is a major income source, and Honey’s supposed link hijacking has cost creators significant earnings. Lawsuits have already been filed by well-known YouTube channels like LegalEagle and GamersNexus, highlighting the financial losses and breach of trust experienced by content creators.
• Consumers – Many users believed they were getting the best deals through Honey, but the revelation that they were shown only ‘partner-approved’ coupons has left them feeling misled. Consumers might have unknowingly spent more than they needed to by trusting the extension’s recommendations.

Why Was the Honey Extension So Popular in the First Place?

Honey’s success can largely be attributed to its marketing strategy, which heavily relied on influencer endorsements.

By positioning itself as a wholesome, money-saving tool, the brand managed to gain the trust of millions of users. Influencers promoted it enthusiastically, believing in its ability to genuinely benefit their audiences. This widespread trust made the recent scandal all the more shocking.

What Will Happen to the Honey Extension?

With two class-action lawsuits underway, Honey is facing immense legal pressure. If the allegations hold up in court, the company could face severe financial penalties and a tarnished reputation that might be impossible to recover from. PayPal, which owns the Honey, will also likely experience backlash and scrutiny.

Don’t Let the Honey Extension Ruin Affiliate Marketing

Despite Honey’s current reputation crisis, affiliate marketing itself remains one of the biggest revenue streams for influencers, with many content creators have built sustainable businesses through ethical affiliate partnerships, and a valuable income stream for brands.

At The Marketing Optimist, we’ve seen first hand how powerful affiliate marketing can deliver great results for brands, creators, and consumers alike. We touch on how we use affiliate marketing (sans social media influencers) in our latest newsletter, and you can read the story here. 

Don’t let Honey’s actions ruin the concept of affiliate marketing—it’s still a win-win when done right. The focus should be on transparency, ethical practices, and ensuring that both creators and consumers benefit fairly from the system.

Want us to boost your sales with Affiliate Marketing? Get in touch for a friendly call!