MegaLag Investigation Exposes Potentially Deceptive Practices by Honey Browser Extension
A recent investigation by MegaLag has raised concerns about Honey, the widely used browser extension that claims to offer discount codes for online shoppers. While the extension is free to use, the investigation suggests that Honey may be misleading consumers and providing undue benefits to businesses at their expense.
Honey: A Popular Tool for Discounts, But Is It Costing You More Than You Think?
Launched in 2012, Honey quickly gained traction after going viral on Reddit, and by 2014, it had already amassed over 900,000 users. This growth coincided with the rise of online shopping, where discount codes became a powerful tool to incentivize purchases. Companies began using these codes—whether generic or personalized—to attract more customers.
Honey’s appeal was simple: install the extension, and it would automatically apply the best available discount codes as you shop, ensuring you never missed a deal. For many users, including the author, the frustration of missing out on discounts made Honey’s promise irresistible.
As Honey's user base exploded, so did its funding. In 2020, PayPal acquired Honey for $4 billion, rebranding it as PayPal Honey, solidifying its role as a major player in the online shopping world.
How Honey Might Be Costing You Money
While Honey’s pitch seemed straightforward, a recent investigation by MegaLag has revealed that the extension may not be as consumer-friendly as it claims. What was supposed to be a tool for automatically applying the best discount codes now seems to benefit businesses and Honey itself at the expense of shoppers.
MegaLag’s findings suggest that Honey’s algorithm often leads users to less favorable discounts. Originally, Honey’s goal was to pick up leaked discount codes and apply them automatically for users, even if the codes weren’t intended for general use. But over time, Honey began partnering with businesses to offer specific, often less generous discounts—like the "HONEY10" code for 10% off. The investigation highlights instances where Honey promoted these codes over others that offered greater savings.
As a result, Honey may have been misleading consumers into thinking they were getting the best deal, while in reality, they were settling for lesser discounts. This compromises the very purpose of the extension: to save users money.
Impact on Influencers and Affiliate Marketing
The MegaLag investigation also uncovered troubling practices involving influencers who promoted Honey, including well-known figures like Linus Tech Tips and Marques Brownlee. The investigation suggests that Honey is unfairly claiming credit for sales that influencers generate through affiliate marketing.
In affiliate marketing, influencers or platforms like Goosed earn a commission by recommending products via affiliate links. When users purchase through these links, the influencer or platform receives a small commission, without it affecting the consumer’s price. However, if a user has Honey installed and clicks on an affiliate link, Honey’s algorithm redirects the credit for the sale to itself, diverting the revenue away from the influencer or platform.
While this may not immediately impact an influencer’s revenue, the broader issue is Honey’s deceptive practices, which mislead consumers and deprive influencers of the credit they deserve for generating sales.
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