PayPal Honey: Difference between revisions
Caoten hoch2 (talk | contribs) m Changed year to 2025 since this is when the incident took place |
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== Consumer Protection Incidents == | == Consumer Protection Incidents == | ||
=== | === Content Creator Lawsuit (Jan. 2025) === | ||
A class action lawsuit was filed in January 2025 alleging that Honey manipulated affiliate marketing links without proper disclosure or compensation. The suit claims 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>[https://www.courtlistener.com/docket/69503243/9/wendover-productions-llc-v-paypal-inc/ "Wendover Productions, LLC v. PayPal Inc"]. ''courtlistener.com''. Free Law Project. Retrieved January 15, 2025.</ref> | |||
=== 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: | |||
* Delete the original affiliate's tracking cookie | |||
* Replace it with Honey's own affiliate cookie via a hidden redirect tab | |||
* Claim the commission that was intended for the original content creator | |||
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>MegaLab (December 21, 2024). [https://www.youtube.com/watch?v=ksjzI-8Rz2w "The Honey Scandal & How to Become a REAL Influencer!"]. ''YouTube''. Retrieved January 15, 2025.</ref> | |||
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>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> | |||
== Consumer Rights Policies == | == Consumer Rights Policies == | ||