YouTuber MegaLag recently dropped a bombshell 23-minute video leveling serious accusations against Honey, the popular free browser extension that promises to find the best coupon codes for online shoppers. Honey, a PayPal subsidiary, has a significant presence in the influencer marketing sphere, sponsoring creators and running ads alongside their content. MegaLag’s explosive claim? “Honey is a scam.”
The video alleges that Honey withheld affiliate revenue rightfully belonging to influencers who promoted specific products. Furthermore, MegaLag claims Honey has agreements with retailers to prioritize the application of *their* preferred discount codes, effectively misleading both the influencers and the trusting consumers who relied on Honey for the best deals. The video, which amassed over 14 million views by January 1st, sparked widespread outrage and praise for MegaLag’s investigative journalism.
The controversy quickly spread. Marques Brownlee, a prominent YouTuber who previously partnered with Honey, released his own video addressing the allegations. Brownlee stated unequivocally, “Obviously, if I had known any of this, I never would’ve worked with Honey.” This sentiment reflects the growing unease surrounding Honey’s practices. The fallout intensified when lawyers representing content creators who collaborated with Honey filed a class-action lawsuit against PayPal on December 29th, seeking damages exceeding $5 million. While Brownlee was not listed among the plaintiffs, his statement underscores the potential breadth of the impact.
PayPal, in a statement to Law.com, defended Honey, emphasizing its purported benefits: “Honey is free to use and provides millions of shoppers with additional savings on their purchases whenever possible,” a spokesperson stated. They further claimed Honey assists merchants by reducing cart abandonment and comparison shopping, ultimately increasing sales conversions, and that Honey adheres to industry standards, including “last click attribution.” However, this defense has done little to quell the growing public distrust and legal challenges facing the company.