PayPal’s Honey extension faces lawsuit alleging it scams influencers

Honey, the PayPal-owned discount coupon-finding browser extension, is in hot water after social media influencers accused it of stealing their affiliate revenue.

Affiliate revenue is the commission earned by influencers when they market a product. 

YouTuber and lawyer Devin Stone, who posts under the name LegalEagle, has sued PayPal, claiming the company undermines the affiliate marketing system by systematically diverting “commissions from rightful earners.”

In a video posted last month, YouTuber MegaLag showed how the Honey extension installed in users’ browsers replaces affiliate links promoted by creators with its own, diverting commissions to itself. This happens even when Honey’s link offers lesser discounts than the influencer’s referral link.

Honey prides itself on finding the best discounts possible.

PayPal denies the allegations, stating that Honey adheres to industry norms like last-click attribution, where the final touchpoint earns credit for a sale.