The Fall of Honey, Explained

TechJD
6 min readJan 8, 2025

--

Deception, Fraud, and Broken Trust

Savings at the click of a button. That was the promise. Honey, a browser extension owned by PayPal, sold itself as a shortcut to discounts — trusted by millions and endorsed by influencers. It wasn’t just software; it was a symbol of convenience in online shopping.

But cracks started to show.

Quiet complaints turned into viral Reddit threads. Users noticed strange patterns — links changing, commissions vanishing, and questions no one seemed to answer. Influencers who vouched for Honey suddenly found themselves under fire. Consumers who trusted it felt betrayed.

Now, Honey faces allegations of fraud, lawsuits, and an exodus of users. The story is deeper than bad code — it’s a lesson about trust, hidden agendas, and the cost of convenience.

The First Signs of Trouble

It didn’t start with lawsuits. It started with whispers.

Frustrated users turned to Reddit, asking questions no one else seemed to be asking. Why were influencer links failing to credit their creators? Why did Honey always seem to push certain deals? And why, after installing the extension, did it feel like someone else was controlling the checkout process?

Reddit’s Frontlines:

  • r/youtube: Creators noticed affiliate commissions disappearing. Their earnings plummeted, even though sales seemed steady.
  • r/mildlyinfuriating: Users vented about weak discounts and suspicious patterns during checkout. Deals weren’t as good as promised.
  • r/UKPersonalFinance: Savvy users dissected Honey’s practices, exposing link manipulation and data collection concerns.

For many, the signs felt small at first — a coupon that didn’t apply, a discount that seemed too convenient. But the deeper people dug, the more unsettling the pattern became.

Then the headlines hit. And the story exploded.

Breaking Down the Scam

What Honey promised: effortless savings. What Honey allegedly delivered: quiet theft.

The accusations are specific — and damning. Honey didn’t just recommend coupons. It allegedly manipulated transactions to reroute commissions meant for influencers into its own pocket. And it did so in ways that most users never saw.

How It Worked:

  • Creators Shared Links: Influencers promoted affiliate links, expecting commissions from sales.
  • Honey Intercepted the Process: When users clicked, Honey reportedly overwrote the link with its own affiliate ID.
  • Honey Pocketed the Profits: The commission meant for creators went straight to Honey.
  • Consumers Stayed in the Dark: Users believed they were saving money while unknowingly funding Honey’s operation.

The Scale of the Allegations:

  • Honey’s method allegedly targeted thousands of transactions daily.
  • Popular influencers, including MrBeast, endorsed Honey, leaving their credibility tied to the scandal.
  • Users only realized the problem after public outcry exposed Honey’s tactics.

This wasn’t a glitch. It was a system designed to exploit trust — from influencers and consumers alike.

The Fallout: Consumers, Influencers, and Trust Lost

The damage spread fast. Influencers faced waves of criticism. Consumers felt duped. PayPal scrambled to defend itself.

Influencers Under Fire:

  • MrBeast and others who promoted Honey faced backlash from audiences who felt misled.
  • Apologies were issued, but some fans weren’t ready to forgive.
  • Many influencers cut ties, fearing long-term damage to their reputations.

Consumers Reacted Quickly:

  • Reports of over 3 million users deleting Honey surfaced within weeks of the scandal.
  • Trust eroded — not just in Honey, but in browser extensions as a whole.
  • Reddit threads exploded with users sharing similar experiences and asking who else was playing dirty.

Key Takeaways for Users:

  • Browser extensions aren’t always as harmless as they appear.
  • Affiliate marketing — often invisible to users — can be weaponized.
  • Blind trust in technology can leave both influencers and consumers exposed.

For many, Honey was more than a coupon tool. It symbolized how fragile online trust can be — and how easy it is to lose.

Legal Battles and Industry Shifts

What started as speculation turned into court filings. Allegations of fraud, unfair competition, and privacy violations piled up. Honey and its parent company, PayPal, were suddenly under intense scrutiny — not just from users, but from regulators and lawmakers.

The Lawsuits:

  • Influencers accused Honey of intercepting commissions through link manipulation.
  • Users filed claims of false advertising and data privacy breaches.
  • Consumer protection groups demanded investigations into Honey’s business practices.
The Kristensen Law Group filed a class-action suit against Honey, claiming damages over $5 million.

PayPal’s response? Denial. The company insisted Honey followed industry norms. But legal experts weren’t convinced. They pointed out that Honey’s methods exposed a gray area in affiliate marketing laws — one regulators may soon close.

Broader Industry Impacts:

  • Browser Extensions: Extensions face renewed pressure to disclose how they handle data and transactions.
  • Affiliate Marketing Programs: Companies are reevaluating tracking systems to avoid legal risks.
  • Tech Oversight: Regulators are considering stricter rules for tools that interact with user transactions.

This isn’t just about Honey. It’s about trust in tech — and whether the systems that power online shopping are working against the people they claim to help.

What This Means for You

You aren’t just a shopper. You’re a target.

The Honey scandal revealed how browser extensions can exploit your trust. It showed how invisible systems — ones you never think about — can redirect money, alter transactions, and collect data without your knowledge.

If it happened with Honey, it can happen elsewhere. And it’s likely already happening.

What You Can Do:

  • Question Convenience: Tools that make things “easier” often come with strings attached. Look closely.
  • Audit Your Extensions: Go through your browser tools. Remove anything you don’t fully understand.
  • Read the Terms: Nobody likes doing it, but it’s your best defense against hidden practices.
  • Track Purchases Yourself: Don’t trust automated systems to do it for you. Check receipts and affiliate codes.

Technology changes faster than laws. That’s why the burden of awareness falls on you.

Final Thoughts

This isn’t just Honey’s problem — it’s yours.

Honey didn’t invent affiliate fraud. It just got caught. The truth is, most users still don’t know how browser extensions work — or how they can be exploited. That lack of knowledge makes you vulnerable.

Ask yourself:

  • Do you know how your browser extensions handle your data?
  • Are you sure the deals you’re getting aren’t steering you toward someone else’s profit?
  • How much personal information do you give away when you shop online?

The answers might surprise you.

The Honey scandal is a wake-up call. It shows how far companies will go to profit from your trust — and how little you’ll know about it until it’s too late.

You can’t afford to assume the tools you use are safe. Because, as Honey proved, sometimes they aren’t.

Astraea is an analyst with a rich background in finance, having worked at various research firms where he gained deep insights into investments and corporate strategies. Now, he blends this expertise with a unique perspective, crafting content for those venturing in finance, tech, or crypto. For more information check out Ascendant Finance.

https://twitter.com/ascendantfi
https://twitter.com/cryptocadetapp
https://twitter.com/thetechjd

A Word of Caution

Nothing in this article is financial advice. This was written purely for entertainment purposes, and we don’t hold or own any of the coins mentioned. If you’re tempted to jump into the meme coin frenzy, remember to do your own research — or at least check if the developer is live-streaming from a dog cage or toilet first.

--

--

TechJD
TechJD

Written by TechJD

Law, programming, and everything in-between! Coming up with fun coding projects with real-world application.

No responses yet