A viral YouTube investigation has shaken the digital world, accusing the popular browser extension Honey, owned by PayPal, of engaging in deceptive practices that could be scamming consumers and stealing revenue from affiliates. The 23-minute expose, released by New Zealand-based content creator MegaLag, has racked up over 6 million views in just two days, sparking a major backlash against the company and forcing several high-profile influencers to sever their ties with the extension.

Honey Accused of Manipulating Affiliate Links and Hidden Tabs

The investigation alleges that Honey, which helps users find online coupons and discount codes, has been opening hidden browser tabs to simulate referral link clicks. This, according to MegaLag, allows the extension to falsely claim referral earnings and override affiliate links placed by influencers. The video claims that these practices lead to consumers being steered toward suboptimal deals and hurt influencers and affiliate marketers who rely on commissions from legitimate referrals.

“At first, I thought Honey was just helping me find great deals,” MegaLag says in the video. “But when I dug deeper, I realized that Honey isn’t just providing better prices—it’s making money by tricking consumers and stealing commissions from creators. This isn’t just bad for influencers, it’s bad for the whole e-commerce ecosystem.”

The Role of Influencers in Promoting Honey

Honey has long been a favorite among YouTubers and other influencers, who have praised the browser extension for its ability to find and apply discount codes on thousands of online stores. Influencers like Jimmy “MrBeast” Donaldson, Marques “MKBHD” Brownlee, and Linus Sebastian of Linus Tech Tips have all promoted Honey extensively in the past, helping the extension gain millions of users worldwide.

However, following the release of MegaLag’s investigation, many of these influencers are distancing themselves from the extension. Linus Tech Tips, one of the most prominent tech channels on YouTube, has announced that they are ending their partnership with Honey after learning about the hidden tabs and affiliate link overrides. In a statement on Twitter, Linus said, “After reviewing the claims and doing our own research, we’ve decided to part ways with Honey. We can’t support a product that undermines the trust of our audience.”

Marques Brownlee, a tech reviewer with over 17 million subscribers, also expressed concern. “We’ve worked with Honey in the past, but we won’t be promoting them moving forward after hearing about these practices. We always aim to recommend products and services that provide real value, and this doesn’t meet those standards.”

Even MrBeast, who has more than 200 million subscribers across various platforms, took to social media to condemn the allegations, saying, “I always want to be transparent with my audience. If these claims are true, I can’t endorse something that hurts creators and consumers. I’ll be looking into alternatives.”

How Honey’s Practices May Impact Consumers and Affiliates

The core issue with Honey, according to MegaLag, is that the browser extension allegedly replaces better discount codes found on a website with its own affiliate codes, which may not offer the best deal. Worse yet, Honey’s hidden tab system reportedly simulates click-throughs on referral links to generate commissions for itself, even if the consumer never clicks on those links. This could artificially inflate Honey’s earnings while depriving influencers and creators of the revenue they rightfully earned.

The expose also sheds light on potential price hikes for businesses that partner with Honey. If Honey is overriding legitimate affiliate links and funneling users to its own deals, companies may face higher marketing costs as they are forced to pay out a larger share of their revenue to Honey instead of their own partners.

In some cases, business owners have claimed that Honey’s practices may even result in higher prices for consumers, as companies increase their prices to offset the costs of working with the extension.

“This isn’t just about affiliate links; it’s about the integrity of the e-commerce system,” says one anonymous affiliate marketer. “We work hard to build trust with our audience and our partners, but Honey is cutting us out and taking the lion’s share of the profits.”

PayPal Responds to Allegations

Honey, which was acquired by PayPal in 2020 for $4 billion, has yet to issue a detailed public response to the investigation. In a brief statement, PayPal acknowledged that they are “reviewing the claims made by the content creator MegaLag” and “take any allegations of fraudulent behavior seriously.”

However, many consumers and influencers are demanding more transparency and a formal investigation into Honey’s practices. In the meantime, several tech industry watchdogs and legal experts have called for increased scrutiny of browser extensions like Honey, suggesting that more regulation may be necessary to protect both consumers and affiliate marketers from deceptive practices.

The Future of Browser Extensions and Affiliate Marketing

The fallout from MegaLag’s investigation has prompted many to question the ethical practices of other browser extensions that promise to save users money or generate revenue for creators. While browser extensions like Honey have made it easier for users to find deals, the rise of hidden affiliate link manipulation and deceptive referral practices has raised alarms about the potential for abuse in the growing affiliate marketing space.

“Browser extensions should be transparent and ethical in their operations,” says digital marketing expert Rachel Green. “Consumers and creators both need to trust that the tools they use to find deals or promote products are not secretly working against their best interests.”

As the investigation continues to gain traction, more influencers are expected to reevaluate their partnerships with Honey, and consumers may be more cautious about installing extensions that promise to save them money. Whether Honey can survive this public relations crisis and restore trust with its user base remains to be seen, but the revelations have certainly cast a shadow over the once-popular extension.

Conclusion

The allegations against Honey have exposed significant vulnerabilities in the world of affiliate marketing and browser extensions, with the potential for a wider reckoning across the industry. As more influencers and creators distance themselves from the extension, it remains to be seen whether Honey will be able to regain its reputation or if the scandal will prompt lasting changes in how browser extensions operate.