PayPal Honey: Difference between revisions
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'''Honey''' (now '''PayPal Honey''') is a browser extension and platform owned by [[PayPal]] since its acquisition for $4 billion in 2020.<ref>{{Cite web |last=Perez |first=Sarah |title=PayPal to acquire shopping and rewards platform Honey for $4B |url=https://techcrunch.com/2019/11/20/paypal-to-acquire-shopping-and-rewards-platform-honey-for-4-billion/ |website=TechCrunch | '''Honey''' (now '''PayPal Honey''') is a browser extension and platform owned by [[PayPal]] since its acquisition for $4 billion in 2020.<ref>{{Cite web |last=Perez |first=Sarah |title=PayPal to acquire shopping and rewards platform Honey for $4B |url=https://techcrunch.com/2019/11/20/paypal-to-acquire-shopping-and-rewards-platform-honey-for-4-billion/ |website=TechCrunch | ||
|date=20 Nov 2019 |access-date=13 Jan 2026 |url-status=live |archive-url=https://web.archive.org/web/20191120233514/https://techcrunch.com/2019/11/20/paypal-to-acquire-shopping-and-rewards-platform-honey-for-4-billion/ |archive-date=20 Nov 2019}}</ref> The service, launched in 2012, is primarily known for its browser extension that automatically searches for and applies discount codes during online shopping checkout processes. The company is headquartered in Los Angeles, California.<ref>{{Cite web |last=Metcalf |first=Tom |last2=Verhage |first2=Julie |title=Coupon Duo Now Worth $1.5 Billion After Honey's Sale to PayPal |url=https://www.bloomberg.com/news/articles/2020-01-28/coupon-duo-now-worth-1-5-billion-after-honey-s-sale-to-paypal |website=Bloomberg |date=28 Jan 2020 |access-date=13 Jan 2026 |url-status=live |archive-url=https:// | |date=20 Nov 2019 |access-date=13 Jan 2026 |url-status=live |archive-url=https://web.archive.org/web/20191120233514/https://techcrunch.com/2019/11/20/paypal-to-acquire-shopping-and-rewards-platform-honey-for-4-billion/ |archive-date=20 Nov 2019}}</ref> The service, launched in 2012, is primarily known for its browser extension that automatically searches for and applies discount codes during online shopping checkout processes. The company is headquartered in Los Angeles, California.<ref>{{Cite web |last=Metcalf |first=Tom |last2=Verhage |first2=Julie |title=Coupon Duo Now Worth $1.5 Billion After Honey's Sale to PayPal |url=https://www.bloomberg.com/news/articles/2020-01-28/coupon-duo-now-worth-1-5-billion-after-honey-s-sale-to-paypal |website=Bloomberg |date=28 Jan 2020 |access-date=13 Jan 2026 |url-status=live |archive-url=http://web.archive.org/web/20250911135014/https://www.bloomberg.com/news/articles/2020-01-28/coupon-duo-now-worth-1-5-billion-after-honey-s-sale-to-paypal |archive-date=11 Sep 2025}}</ref> | ||
==Consumer impact summary== | ==Consumer impact summary== | ||
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In December 2024, a [[class-action lawsuit]] was filed against PayPal by Wendover Productions, LLC alleging that Honey manipulated affiliate marketing links without proper disclosure or compensation. The suits claim Honey replaced legitimate affiliate links with their own, even when no coupons were found for users. This practice allegedly impacted both content creators and consumers who intended to support specific affiliates.<ref name="wendover-v-paypal" /> | In December 2024, a [[class-action lawsuit]] was filed against PayPal by Wendover Productions, LLC alleging that Honey manipulated affiliate marketing links without proper disclosure or compensation. The suits claim Honey replaced legitimate affiliate links with their own, even when no coupons were found for users. This practice allegedly impacted both content creators and consumers who intended to support specific affiliates.<ref name="wendover-v-paypal" /> | ||
Gamers Nexus, LLC later filed a class-action lawsuit against PayPal in January 2025 citing the same grievances.<ref name="gamersnexus-v-paypal-holdings" /> They later announced in a video upload on 15 June 2025 that they were withdrawing, with prejudice, as a plaintiff.<ref>{{Cite web |author=GNCA - GamersNexus Consumer Advocacy |title=$120 Billion Bank Subpoenas GamersNexus | PayPal Honey Lawsuit Update, ft. Capital One |url=https://www.youtube.com/watch?v=idIWS-mHKQk |website=[[YouTube]] |date=15 Jun 2025 |access-date=13 Jan 2026 |url-status=live}}</ref> | Gamers Nexus, LLC later filed a class-action lawsuit against PayPal in January 2025 citing the same grievances.<ref name="gamersnexus-v-paypal-holdings" /> They later announced in a video upload on 15 June 2025 that they were withdrawing, with prejudice, as a plaintiff.<ref>{{Cite web |author=GNCA - GamersNexus Consumer Advocacy |title=$120 Billion Bank Subpoenas GamersNexus | PayPal Honey Lawsuit Update, ft. Capital One |url=https://www.youtube.com/watch?v=idIWS-mHKQk |website=[[YouTube]] |date=15 Jun 2025 |access-date=13 Jan 2026 |url-status=live |archive-url=https://preservetube.com/watch?v=idIWS-mHKQk |archive-date=23 Feb 2026}}</ref> | ||
===Significant changes to the Terms of Service (''October 2024 - December 2024'')=== | ===Significant changes to the Terms of Service (''October 2024 - December 2024'')=== | ||
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When asked by such businesses to remove these private discount codes, Honey is alleged to have told those businesses that they are unable to remove the codes unless the business agrees to partner with them, essentially paying a fee to be protected from a service they do not want to partner with. Honey is also reported to have attempted to deceive such businesses about the company's capacity to remove such discount codes, with one agent claiming to one business that Honey was unable to remove a private employee coupon code from public distribution unless the business partnered with Honey, just one month after the same agent agreed to remove the private code of another business upon request. Honey eventually agreed to remove the code, however the business claims that the problem has occurred repeatedly.<ref>{{Cite web |author=MegaLag |title=Exposing Honey's Evil Business Model (PART 2) |url=https://www.youtube.com/watch?v=wwB3FmbcC88 | When asked by such businesses to remove these private discount codes, Honey is alleged to have told those businesses that they are unable to remove the codes unless the business agrees to partner with them, essentially paying a fee to be protected from a service they do not want to partner with. Honey is also reported to have attempted to deceive such businesses about the company's capacity to remove such discount codes, with one agent claiming to one business that Honey was unable to remove a private employee coupon code from public distribution unless the business partnered with Honey, just one month after the same agent agreed to remove the private code of another business upon request. Honey eventually agreed to remove the code, however the business claims that the problem has occurred repeatedly.<ref>{{Cite web |author=MegaLag |title=Exposing Honey's Evil Business Model (PART 2) |url=https://www.youtube.com/watch?v=wwB3FmbcC88 | ||
|website=[[YouTube]] |date=21 Dec 2025 |access-date=13 Jan 2026 |url-status=live}}</ref> | |website=[[YouTube]] |date=21 Dec 2025 |access-date=13 Jan 2026 |url-status=live |archive-url=https://preservetube.com/watch?v=wwB3FmbcC88 |archive-date=23 Feb 2026}}</ref> | ||
===Alleged violations of affiliate network policies (''December 2025'')=== | ===Alleged violations of affiliate network policies (''December 2025'')=== | ||
In a separate video uploaded on 30 December 2025, MegaLag further alleged that Honey was violating affiliate network policies. An example he cited is where a typical contract clause may state "you are only allowed to use coupons or promotional codes that are provided exclusively through the affiliate program," but Honey would ignore the clause unless and until it was enforced. For instance, in the "Note Monetization" column for the application's data spreadsheet, an employee left a note stating that the {{Wplink|Lindt}} chocolatier company had "non-affiliate clause, but don't have any codes from network so can't remove other coupon sources".<ref>{{Cite web |author=MegaLag |title=The Honey Scam is Worse Than I Thought |url=https://www.youtube.com/watch?v=qCGT_CKGgFE |website=[[YouTube]] |date=30 Dec 2025 |access-date=13 Jan 2026 |url-status=live}}</ref> | In a separate video uploaded on 30 December 2025, MegaLag further alleged that Honey was violating affiliate network policies. An example he cited is where a typical contract clause may state "you are only allowed to use coupons or promotional codes that are provided exclusively through the affiliate program," but Honey would ignore the clause unless and until it was enforced. For instance, in the "Note Monetization" column for the application's data spreadsheet, an employee left a note stating that the {{Wplink|Lindt}} chocolatier company had "non-affiliate clause, but don't have any codes from network so can't remove other coupon sources".<ref>{{Cite web |author=MegaLag |title=The Honey Scam is Worse Than I Thought |url=https://www.youtube.com/watch?v=qCGT_CKGgFE |website=[[YouTube]] |date=30 Dec 2025 |access-date=13 Jan 2026 |url-status=live |archive-url=https://preservetube.com/watch?v=qCGT_CKGgFE |archive-date=23 Feb 2026}}</ref> | ||
===Removal from Rakuten Advertising (''January 2026'')=== | ===Removal from Rakuten Advertising (''January 2026'')=== | ||