Is Honey Cheating Creators? A New Legal Battle Unfolds
In a twist that has the tech world buzzing, a new lawsuit claims the popular browser extension Honey, owned by PayPal since 2019 at a hefty price of $4 billion, is shortchanging content creators. Known for its ability to automatically provide shoppers with coupon codes, Honey is now under fire for allegedly diverting affiliate earnings away from creators.
YouTuber MegaLag recently sparked controversy by labeling Honey a “scam” in a video, accusing it of “stealing money from influencers.” The crux of the accusation is that Honey reportedly swaps out creators’ affiliate links with its own during transactions—regardless of whether it offers any discount—thereby pocketing the affiliate revenue meant for creators.
Enter Devin Stone, a lawyer based in Washington, D.C., known for his LegalEagle YouTube channel. Stone has taken legal action against PayPal, asserting that the company “systematically diverts commissions from rightful earners, undermining the affiliate marketing system.” He points out the irony that PayPal encourages influencers to promote Honey, only for it to potentially undercut their own earnings.
“Adding to the irony, PayPal enlists content creators and influencers to promote the Honey browser extension to their audiences, effectively enabling it to usurp the commissions and other benefits those same creators depend on for income,” Stone elaborates in his lawsuit.
{Devin Stone}
In response, PayPal shared a statement with The Verge denying the allegations and promising a robust defense. They highlighted their adherence to industry standards such as last-click attribution—a system where the last touchpoint in an online purchase gets all the credit.
Stone has also taken his fight online, releasing a video that critiques Honey’s marketing strategy. He describes it as a “sleeping leech” in browsers that could devalue future sponsorships and affiliate relationships for creators once installed.
- Stone aims for class-action status for his lawsuit
- Seeks other creators to join in
This unfolding saga captures a significant moment in the intersection of technology and creator economies. As it progresses, it raises important questions about how online tools can impact revenue streams for digital creators.
