Everything You Need to Know About PayPal’s Alleged Scam Coupon App, Honey

PayPal’s Honey browser extension has been a go-to tool for snagging online coupons, but recent scrutiny has led some to label it a “scam.” This shift in perception follows a detailed investigation by YouTuber MegaLag, who initially raised concerns about Honey allegedly “stealing money from influencers.” In a follow-up video, he expanded on these claims, suggesting that Honey targeted minors, gathered data from individuals who never opted in, and took advantage of small businesses.

The first video primarily focuses on Honey’s use of last-click attribution, where it replaces other tracking cookies when users engage with it. The sequel delves into a series of emails revealing how Honey’s private coupon codes impacted small businesses financially and how it pressured them to become partners. It also highlights Honey’s strategy of collaborating with popular YouTubers who have large, younger audiences, such as Mr. Beast.

In response to the initial video, PayPal stated in 2024 that it adheres to “industry rules and practices,” including last-click attribution. However, creators who feel they’ve lost revenue due to this practice are voicing their discontent, with some channels, like Legal Eagle and GamersNexus, taking legal action.