PayPal Honey: Difference between revisions
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| Logo = PayPal_Honey.svg|thumb|The logo for PayPal Honey, formerly "Honey" | | Logo = PayPal_Honey.svg|thumb|The logo for PayPal Honey, formerly "Honey" | ||
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Honey (now PayPal Honey) is a browser extension and platform owned by [[PayPal | '''[https://en.wikipedia.org/wiki/PayPal_Honey Honey]''' (now '''PayPal Honey''') is a browser extension and platform owned by [[PayPal]] since its acquisition for $4 billion in 2020.<ref>Perez, Sarah (November 20, 2019). [https://techcrunch.com/2019/11/20/paypal-to-acquire-shopping-and-rewards-platform-honey-for-4-billion/ "PayPal to acquire shopping and rewards platform Honey for $4B"]. ''TechCrunch''. Retrieved January 15, 2025.</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>Metcalf, Tom; Verhage, Julie (January 28, 2020). [https://web.archive.org/web/20201209044201/https://www.bloombergquint.com/onweb/coupon-duo-now-worth-1-5-billion-after-honey-s-sale-to-paypal "Coupon Duo Now Worth $1.5 Billion After Honey's Sale to PayPal"]. ''BloombergQuint''. Archived from the original on December 9, 2020. Retrieved January 15, 2025.</ref> | ||
== Consumer | == Consumer-protection summary == | ||
==== Privacy ==== | ==== Privacy ==== | ||
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* Users forced to accept terms modifications without direct notification<ref name="terms-of-use"/> | * Users forced to accept terms modifications without direct notification<ref name="terms-of-use"/> | ||
== Consumer | == Consumer-protection incidents == | ||
==== Content | ==== Content-creator lawsuits (Dec. 2024) ==== | ||
In December 2024, a [[class action lawsuit]] was filed against | 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 | [[Gamers Nexus, LLC]] later filed a class-action lawsuit against PayPal in January 2025 highlighting the same issues.<ref name="gamersnexus-v-paypal-holdings"/> | ||
==== Affiliate | ==== Affiliate-tampering controversy (Dec. 2024) ==== | ||
In December 2024, investigations revealed that Honey was engaging in systematic manipulation of affiliate marketing links. The investigations found that when users clicked on content creators' affiliate links and subsequently used Honey during checkout, the extension would: | In December 2024, investigations revealed that Honey was engaging in systematic manipulation of affiliate-marketing links. The investigations found that when users clicked on content creators' affiliate links and subsequently used Honey during checkout, the extension would: | ||
* Delete the original affiliate's tracking cookie | * Delete the original affiliate's tracking cookie | ||
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This practice is an example of "cookie stuffing," where a dishonest affiliate injects their own affiliate cookie without the user's knowledge.<ref>[https://www.justice.gov/usao-ndca/pr/laguna-niguel-man-receives-fifteen-month-prison-term-defrauding-ebay Laguna Niguel Man Receives Fifteen-Month Prison Term For Defrauding eBay] ''U.S. Attorney's Office, Northern District of California''. August 4, 2014. Retrieved January 18, 2025.</ref> | This practice is an example of "cookie stuffing," where a dishonest affiliate injects their own affiliate cookie without the user's knowledge.<ref>[https://www.justice.gov/usao-ndca/pr/laguna-niguel-man-receives-fifteen-month-prison-term-defrauding-ebay Laguna Niguel Man Receives Fifteen-Month Prison Term For Defrauding eBay] ''U.S. Attorney's Office, Northern District of California''. August 4, 2014. Retrieved January 18, 2025.</ref> | ||
Additionally, contrary to marketing claims about finding "the best deals, | Additionally, contrary to marketing claims about finding "the best deals", Honey was found to have agreements with partner stores allowing them to control which coupon codes appeared through the extension. This meant stores could hide better discounts while only showing Honey users lower-value coupons. The practice directly contradicted years of marketing claims that promised users they would "always get the best deal possible."<ref name="megalag-video"/> | ||
Simon Wijckmans, CEO of c/side, noted that "When users purchased via an affiliate link with Honey installed, commissions intended for creators were redirected to Honey. Additionally, Honey misrepresented deals as the best discounts while partnering with companies to hide better offers."<ref name="techopedia-article"/> | Simon Wijckmans, CEO of c/side, noted that "When users purchased via an affiliate link with Honey installed, commissions intended for creators were redirected to Honey. Additionally, Honey misrepresented deals as the best discounts while partnering with companies to hide better offers."<ref name="techopedia-article"/> | ||