PayPal Honey: Difference between revisions
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{{ | {{ProductPage | ||
| | |infobox_logo=PayPal_Honey.svg | ||
| Release Year | |||
| | |infobox_1_key=Release Year | ||
|infobox_1_value=2012 | |||
| | |||
| | |infobox_2_key=Product Type | ||
|infobox_2_value=Browser Extension | |||
== | |infobox_3_key=In Production | ||
|infobox_3_value=Yes | |||
= | |infobox_4_key=Official Website | ||
|infobox_4_value=https://www.joinhoney.com | |||
= | |description='''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> | ||
= | |summary_privacy_1=Collects extensive personal identifiers including name, email, IP address, and device IDs<ref name="privacy-policy">[https://www.joinhoney.com/privacy "PayPal Honey Privacy Statement"]. ''PayPal Honey''. October 28, 2024. Retrieved January 15, 2025.</ref> | ||
|summary_privacy_2=Retains data for up to 10 years after account closure<ref name="privacy-policy"/> | |||
|summary_privacy_3=Shares data with PayPal companies and merchant partners<ref name="privacy-policy"/> | |||
|summary_privacy_4=Tracks detailed shopping behavior, including purchases, returns, and browsing patterns<ref name="privacy-policy"/> | |||
|summary_privacy_5=Creates inference profiles based on shopping patterns and preferences<ref name="privacy-policy"/> | |||
== | |summary_freedom_1=Consumer choice restricted by intentionally hidden discounts and deals<ref name="megalag-video"/><ref name="techopedia-article"/> | ||
|summary_freedom_2=Mandatory acceptance of arbitration clause with class action waiver<ref name="terms-of-use">[https://www.joinhoney.com/terms "Terms of Use"]. ''PayPal Honey''. January 16, 2024. Retrieved January 15, 2025.</ref> | |||
|summary_freedom_3=No user control over partner-privileged discount system<ref name="megalag-video"/><ref name="techopedia-article"/> | |||
|summary_freedom_4=Service can be terminated at PayPal's discretion without notice<ref name="terms-of-use"/> | |||
|summary_freedom_5=Users forced to accept terms modifications without direct notification<ref name="terms-of-use"/> | |||
==== | |summary_transparency_1=Undisclosed manipulation of affiliate marketing links<ref name="megalag-video">MegaLag (December 21, 2024). [https://www.youtube.com/watch?v=vc4yL3YTwWk "Exposing the Honey Influencer Scam"]. ''YouTube''. Retrieved January 15, 2025.</ref><ref name="techopedia-article">Fernandez, Ray (December 24, 2024). [https://www.techopedia.com/paypal-honey-accused-of-fraud "Is PayPal's Honey Misleading Users? We Investigate"]. ''Techopedia''. Retrieved January 15, 2025.</ref> | ||
|summary_transparency_2=Hidden redirect mechanisms affecting commissions<ref name="megalag-video"/><ref name="techopedia-article"/> | |||
|summary_transparency_3=Selective display of coupon codes based on undisclosed partner agreements<ref name="megalag-video"/><ref name="techopedia-article"/> | |||
|summary_transparency_4=Subject to multiple ongoing class action lawsuits regarding alleged deceptive practices<ref name="wendover-v-paypal">[https://www.courtlistener.com/docket/69503243/9/wendover-productions-llc-v-paypal-inc/ "Wendover Productions, LLC v. PayPal Inc, 5:24-cv-09470, (N.D. Cal.)"]. ''courtlistener.com''. Free Law Project. Retrieved January 15, 2025.</ref><ref name="gamersnexus-v-paypal-holdings">[https://www.courtlistener.com/docket/69517397/gamersnexus-llc-v-paypal-holdings-inc/ "GamersNexus, LLC v. PayPal Holdings, Inc., 5:25-cv-00114, (N.D. Cal.)"]. ''courtlistener.com''. Free Law Project. Retrieved January 15, 2025.</ref> | |||
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"/> | |incidents_1_title=Content-creator lawsuits | ||
|incidents_1_date=Dec. 2024 | |||
|incidents_1_text=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 highlighting the same issues.<ref name="gamersnexus-v-paypal-holdings"/> | [[Gamers Nexus, LLC]] later filed a class-action lawsuit against PayPal in January 2025 highlighting the same issues.<ref name="gamersnexus-v-paypal-holdings"/> | ||
|incidents_2_title=Affiliate-tampering controversy | |||
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: | |incidents_2_date=Dec. 2024 | ||
|incidents_2_text=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 | ||
* Replace it with Honey's own affiliate cookie via a hidden redirect tab | * Replace it with Honey's own affiliate cookie via a hidden redirect tab | ||
* Claim the commission that was intended for the original content creator | * Claim the commission that was intended for the original content creator | ||
This practice is an example of "cookie stuffing," where | |||
This practice is an example of "cookie stuffing," where an 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", 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"/> | 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"/> | ||
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