Honey: all the news about PayPal’s alleged scam coupon app

https://www.theverge.com/24343913/paypal-honey-megalag-coupon-scam-affiliate-fees

Verge Staff Dec 22, 2025 · 1 min read
Honey: all the news about PayPal’s alleged scam coupon app
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Google has updated its affiliate ads policy for Chrome extensions after creators accused PayPal’s popular Honey browser extension of being a “scam.”

Honey was accused of taking affiliate revenue from the same influencers it paid for promotion by using its Chrome extension to swap in its own affiliate link before you checked out. According to the updated Google policy posted today, this isn’t allowed in most cases:

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Devin Stone of the YouTube Channel Legal Eagle is suing PayPal over the affiliate link practices of its Honey extension that were detailed by fellow YouTuber MegaLag last month, he announced in a video published Friday.

The proposed class action lawsuit was filed December 29th in California’s Northern District Court by Stone’s Eagle Team LLP and several other YouTubers’ businesses. It accuses Honey of intentionally replacing creators’ affiliate links with its own, even if it’s not offering shoppers a benefit, depriving creators of money in the process.

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The PayPal Honey browser extension is, in theory, a handy way to find better deals on products while you’re shopping online. But in a video published this weekend, YouTuber MegaLag claims the extension is a “scam” and that Honey has been “stealing money from influencers, including the very ones they paid to promote their product.”

Honey works by popping up an offer to find coupon codes for you while you’re checking out in an online shop. But as MegaLag notes, it frequently fails to find a code, or offers a Honey-branded one, even if a simple internet search will cover something better. The Honey website’s pitch is that it will “find every working promo code on the internet.” But according to MegaLag’s video, ignoring better deals is a feature of Honey’s partnerships with its retail clients.

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