PayPal’s Honey, the popular browser extension promoted by influencers like MrBeast, is facing explosive allegations of defrauding both users and content creators. The claims were made by tech investigator and YouTuber MegaLag in a viral video titled “Exposing the Honey Influencer Scam,” which has garnered over 13 million views since its release on December 21.
MegaLag alleges that Honey exploited “last-click attribution,” effectively stealing affiliate commissions meant for influencers. “PayPal didn’t refer the customer to the store or promote the products—the influencer did,” he explained. The investigation also claims that Honey intentionally prioritized lower-value discount codes provided by businesses, depriving users of better deals.
The accusations have sent shockwaves through the creator community. Influencer Austin Evans, who boasts 5.61 million subscribers, condemned Honey in a December 23 video, declaring, “I will, under no circumstances, work with Honey ever again.” Similarly, Hank Green criticized PayPal for rewarding Honey’s alleged practices, calling it a system of “stealing and lying.”
PayPal, which acquired Honey for $4 billion in 2020, defends the service. A spokesperson stated, “Honey follows industry rules and practices, including last-click attribution. It provides millions of shoppers with additional savings whenever possible.”
Despite the company’s response, the fallout has been significant. MegaLag reported that Honey’s user base dropped from 20 million to 17 million within weeks of the video’s release, a decline corroborated by Newsweek using the Wayback Machine on Honey’s Chrome Store page.
This isn’t the first time Honey has faced backlash. Linus Media Group ended its partnership with the service in 2022, citing concerns over its affiliate practices. More recently, influencers and users alike have called for legal action, with one prominent X user predicting a class-action lawsuit against PayPal and Honey.
The controversy bears similarities to the Johnny Depp vs. Amber Heard defamation trial, highlighting the growing influence of investigative content creators in exposing corporate and public figures. In this case, MegaLag’s exposé has spotlighted alleged predatory practices in the affiliate marketing ecosystem, raising questions about the ethics of tech companies acquiring such services.
MegaLag teased more revelations in an upcoming follow-up video, hinting at “an even darker side to PayPal’s scam.” With legal and public scrutiny mounting, the second installment promises to deepen the conversation around Honey’s practices and their impact on users and influencers alike.
