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= The Honey Browser Scandal - Here’s what you need to know =
= The Honey Browser Controversy =


== Quick Introduction & Background: ==
== Quick Introduction & Background: ==
*CaptialOne faces a nearly identical lawsuit for the same practices. It appears as though this may be an “industry standard” predatory tactic that is more pervasive across coupon extensions en masse which may merit its own page. It may be the case that '''most''' coupon-searching browser extensions behave identically in this regard.
* CapitalOne faces a nearly identical lawsuit for the same practices. It appears as though this may be an “industry standard” predatory tactic that is more pervasive across coupon extensions en masse which may merit its own page. It may be the case that '''most''' coupon-searching browser extensions behave identically in this regard.




Honey is a tool owned by PayPal that was featured in more than a few exposés for their predatory business practices. In a nutshell, Honey is a tool that you can install to your [[wikipedia:Web_browser|web browser]] (Google Chrome, FireFox, Edge, Safari…) that promises to “search the web” to find you the best coupon code available for an item they are shopping for online. It works by "looking" at the checkout page of an online store and searches the internet to find a coupon code for that website. Honey promises its users that they find and test discount codes for your item, and if they can’t find one, it doesn’t exist. That sounds wonderful, and within the spirit of making sure customers get the best deal they can. What Honey actually did behind the scenes is predatory to its end-users, business owners, and content creators (people making Youtube, TikTok, etc. videos promoting the product). In a nutshell, on all fronts possible, Honey exists to drive up PayPal’s profits by means comparable to stealing change from the “take a penny leave a penny” dish at your local bodega. It very often did not find the best deal for its users, and more often than not, Honey only made Paypal richer.
Honey is owned by PayPal and was recently featured in a few online investigations for their business practices.


What Honey actually did behind the scenes is predatory to its end-users, business owners, and content creators (people making Youtube, TikTok, etc. videos promoting the product). In a nutshell, on all fronts possible, Honey exists to drive up PayPal’s profits by means comparable to stealing change from the “take a penny leave a penny” dish at your local bodega.
It is a tool that you can install to your [[wikipedia:Web_browser|web browser]] (Google Chrome, Mozilla Firefox, Microsoft Edge, Safari, etc.) and it states to work by “searching the web” to find you the best coupon code available for an item a person with the extension is shopping for online.
 
'''Honey states''' that it works by looking at the checkout page of an online store and searches the internet to find a coupon code for that website, finding and testing discount codes for your item, and states that if it can’t find one, it doesn’t exist on the internet.
 
However, Honey has been found to often not find the best coupons and deals for its users.


== Victim Group 1: The Consumers ==
== Victim Group 1: The Consumers ==
Honey promises consumers that they will “search the web” for the “best deals available”. What they actually do in practice is search '''their own databases''' (in laymans term, "lists") for coupon codes. In some cases, Honey finds a code and tells the end-user. There is no guarantee, however, that Honey actually found that user the “best” discount code. On some occasions, Honey does manage to find discount codes that business owners never meant to make publicly available. More often than not, however, Honey will “search the web” and tell the end user ‘sorry, there are no eligible coupon codes we could find’. This level of inconsistency makes it hard to trust Honey to do the job they promise to do. Further searches for lawsuits with similar claims leads to a very similar suit against Capital One regarding similar practices, contributing to what may be a pattern among these "coupon finding" browser extensions.
Honey promises consumers that they will “search the web” for the “best deals available”. What they actually do in practice is search '''their own databases''' (lists of coupons) for coupon codes.<!-- citation needed, and maybe reword for neutrality --> In some cases, Honey finds a code and tells the end-user. There is no guarantee, however, that Honey actually found that user the “best” discount code. On some occasions, Honey does manage to find discount codes that business owners never meant to make publicly available<!-- cit needed -->. More often than not,<!-- citation needed, or remove quantitative claim --> however, Honey will “search the web” and tell the end user ‘sorry, there are no eligible coupon codes we could find’. This level of inconsistency makes it hard to trust Honey to do the job they promise to do. Further searches for lawsuits with similar claims leads to a very similar suit against Capital One regarding similar practices, contributing to what may be a pattern among these "coupon finding" browser extensions.<!-- Instead of 'furtehr searches for...', just state the existence of other lawsuits, and reference appropriately -->


== Victim Group 2: Business Owners & Digital Storefronts ==
== Victim Group 2: Business Owners & Digital Storefronts ==
Additionally, PayPal offers business owners a program where they can partner with Honey, for a monthly fee (PayPal makes money). Business owners who choose to pay this “protection money” receive a guarantee that Honey will only show the discount codes the business wants them to show. In a layman comparison, this is like Tony Soprano walking into a sporting goods store and saying, “Hey, if you pay me $19.00 a month, I’ll have someone make sure your customers only ever see sale tags that you want them to see. If you don’t, I’m going to have those same guys look through your entire inventory, all day, every day, and tell customers exactly how they can pay you as little as possible”. There are documented instances of business owners finding what they thought were 'private' or 'one-time' discount codes being used by Honey users, building a strong incentive to "formally partner" with Honey and give PayPal their protection racket.
Additionally, PayPal offers business owners a program where they can partner with Honey, for a monthly fee (PayPal makes money). Business owners who choose to pay this “protection money” receive a guarantee that Honey will only show the discount codes the business wants them to show. There are documented instances of business owners finding what they thought were 'private' or 'one-time' discount codes being used by Honey users, building a strong incentive to "formally partner" with Honey and give PayPal their protection racket.
 
<!-- Needs changing/rewording to be understood without describing tony soprano - these kinds of analogies may be used in theme articles, but are not appropriate elsewhere -->
In a layman comparison, this is like somebody walking into a sporting goods store and saying, “Hey, if you pay me $19.00 a month, I’ll have someone make sure your customers only ever see sale tags that you want them to see. If you don’t, I’m going to have those same guys look through your entire inventory, all day, every day, and tell customers exactly how they can pay you as little as possible”.  


== Victim Group 3: Online Marketing Affiliates (often, "Content Creators") ==
== Victim Group 3: Online Marketing Affiliates (often, "Content Creators") ==
PayPal has largely marketed the Honey browser extension via paid advertisements inside of Youtube, TikTok, and other social media video platforms. This is a strong marketing avenue for them, as most people watch that content in a browser, making it easier to install (generating more users for Honey than, say, advertising on cable television). On its face, this is a very common practice and a means of reaching a very broad audience. But behind the scenes, Honey has been sneaking away with those same creators’ commission checks for products they recommend to their audience. There is a technical explanation to this linked below; this section will cover Honey’s practices at a fairly high level for ease of understanding.


<!-- Whole thing needs rewording to sound less like a journal piece -->
<!-- (This is the rewording) -->


Picture yourself in a big-box electronics store. You ask a staff member for help choosing a television and sound system. The staff member is knowledgeable, helpful, and puts in a genuine effort to educate you about not just which product costs the most money, but which product actually fits your needs the most appropriately. Before you check out, the salesperson gives you a ticket with their name to show at the checkout counter, as they make a commission on products they sell you. You’re happy because you have an opportunity to make an educated purchase thanks to the help of the salesperson, and the salesperson gets a small commission for educating you and closing the sale.
Affiliate marketing is a revenue-sharing model in which individuals or entities (affiliates) partner with companies to earn money for advertising goods and services. This is done through the use of personalized links to track which affiliate sent which customer to an online store. If the customer makes a purchase using an affiliate link, the affiliate whose link was used gets a commission on the sale.


Honey will sometimes disrupt this practice by replacing existing affiliate links with their own at the checkout page whenever a customer interacts with the extension in search of coupons. Even when Honey is unable to find a coupon for the customer, it will still frequently replace the affiliate link. When the customer makes their purchase, Honey takes credit for the sale and gets the commission.


When you get to the cash register, you find that the cashier is not a Big Box Store employee, but works for PayPal. The Honey representative tells you that, before you check out, they can search their system to see if they can find you a coupon, to save you even more money. This sounds great! You get to make an educated purchase, knowing that your item is the best for your needs, and you are going to pay as little as possible! What the Honey cashier did not tell you, is that they’ve replaced the Big Box Store’s employee commission slip with PayPal’s. Whether they find you a coupon or not, Honey steals the commission from the person who worked hard to know about the product and spent time and effort to sell you that product. All of their work is made irrelevant and their commission goes to PayPal, a massive corporation who will apparently stoop to a level of pettiness that belongs in a high school lunchroom.
The Honey extension was largely advertised via Content Creators on YouTube as well as other social media platforms. Affiliate marketing makes up a significant portion of a Content Creator's revenue. Most of the influencers who promoted Honey were unaware of its practices and thus unknowingly promoted a browser extension that poaches their affiliate revenue. Estimates of "stolen" revenue are upwards of 5 million USD. The discovery of Honey's practices has led to a class action lawsuit launched by Wendover Productions.


* ''It is this practice in particular that has attracted legal attention, as several of Honey’s victims in this instance are/were attorneys who create content about legal controversies (such as LegalEagle and America’s Attorney). You can find more information about the suit here: https://honeylawsuit.com/''
* ''It is this practice in particular that has attracted legal attention, as several of Honey’s victims in this instance are/were attorneys who create content about legal controversies (such as LegalEagle and America’s Attorney). They have documented their view on the lawsuit here: https://honeylawsuit.com/''<!-- this is a very partisan source - we shouldn't be saying 'find out more' and then linking to one half of a lawsuit. Instead, try and find some media source which has a reasonable detail of reporting on the lawsuit.


== Sources/Links: ==
In general though, we shouldn't even be saying to the reader 'hey, do this!' in any capacity -->
 
== Sources/Links:<!-- needs reworking into a proper references section. also, not appropriate to signppost people to join a class action. have edited the introduction to the link to reflect this -->==


* Link to join the class action suit for victims: https://eagleteam.law/honeycase/
* Link to the formal class action filing: https://dockets.justia.com/docket/california/candce/5:2024cv09470/441974
* Link to the formal class action filing: https://dockets.justia.com/docket/california/candce/5:2024cv09470/441974
* Louis Rossman's video explaining the scandal: https://www.youtube.com/watch?v=ksjzI-8Rz2w
* Louis Rossmann's video explaining the scandal: https://www.youtube.com/watch?v=ksjzI-8Rz2w
* Original “Breaking” story by New Zealand based creator MegaLag: https://www.youtube.com/watch?v=vc4yL3YTwWk
* Original “Breaking” story by creator MegaLag: https://www.youtube.com/watch?v=vc4yL3YTwWk
* LegalEagle explanation of their class action lawsuit: https://www.youtube.com/watch?v=4H4sScCB1cY&pp=ygUVaG9uZXkgc2NhbmRhbCBsYXdzdWl0
* LegalEagle's explanation of their class action lawsuit: https://www.youtube.com/watch?v=4H4sScCB1cY
 
[[Category:Incidents]]

Latest revision as of 04:24, 15 January 2025

The Honey Browser Controversy[edit | edit source]

Quick Introduction & Background:[edit | edit source]

  • CapitalOne faces a nearly identical lawsuit for the same practices. It appears as though this may be an “industry standard” predatory tactic that is more pervasive across coupon extensions en masse which may merit its own page. It may be the case that most coupon-searching browser extensions behave identically in this regard.


Honey is owned by PayPal and was recently featured in a few online investigations for their business practices.

It is a tool that you can install to your web browser (Google Chrome, Mozilla Firefox, Microsoft Edge, Safari, etc.) and it states to work by “searching the web” to find you the best coupon code available for an item a person with the extension is shopping for online.

Honey states that it works by looking at the checkout page of an online store and searches the internet to find a coupon code for that website, finding and testing discount codes for your item, and states that if it can’t find one, it doesn’t exist on the internet.

However, Honey has been found to often not find the best coupons and deals for its users.

Victim Group 1: The Consumers[edit | edit source]

Honey promises consumers that they will “search the web” for the “best deals available”. What they actually do in practice is search their own databases (lists of coupons) for coupon codes. In some cases, Honey finds a code and tells the end-user. There is no guarantee, however, that Honey actually found that user the “best” discount code. On some occasions, Honey does manage to find discount codes that business owners never meant to make publicly available. More often than not, however, Honey will “search the web” and tell the end user ‘sorry, there are no eligible coupon codes we could find’. This level of inconsistency makes it hard to trust Honey to do the job they promise to do. Further searches for lawsuits with similar claims leads to a very similar suit against Capital One regarding similar practices, contributing to what may be a pattern among these "coupon finding" browser extensions.

Victim Group 2: Business Owners & Digital Storefronts[edit | edit source]

Additionally, PayPal offers business owners a program where they can partner with Honey, for a monthly fee (PayPal makes money). Business owners who choose to pay this “protection money” receive a guarantee that Honey will only show the discount codes the business wants them to show. There are documented instances of business owners finding what they thought were 'private' or 'one-time' discount codes being used by Honey users, building a strong incentive to "formally partner" with Honey and give PayPal their protection racket.

In a layman comparison, this is like somebody walking into a sporting goods store and saying, “Hey, if you pay me $19.00 a month, I’ll have someone make sure your customers only ever see sale tags that you want them to see. If you don’t, I’m going to have those same guys look through your entire inventory, all day, every day, and tell customers exactly how they can pay you as little as possible”.

Victim Group 3: Online Marketing Affiliates (often, "Content Creators")[edit | edit source]

Affiliate marketing is a revenue-sharing model in which individuals or entities (affiliates) partner with companies to earn money for advertising goods and services. This is done through the use of personalized links to track which affiliate sent which customer to an online store. If the customer makes a purchase using an affiliate link, the affiliate whose link was used gets a commission on the sale.

Honey will sometimes disrupt this practice by replacing existing affiliate links with their own at the checkout page whenever a customer interacts with the extension in search of coupons. Even when Honey is unable to find a coupon for the customer, it will still frequently replace the affiliate link. When the customer makes their purchase, Honey takes credit for the sale and gets the commission.

The Honey extension was largely advertised via Content Creators on YouTube as well as other social media platforms. Affiliate marketing makes up a significant portion of a Content Creator's revenue. Most of the influencers who promoted Honey were unaware of its practices and thus unknowingly promoted a browser extension that poaches their affiliate revenue. Estimates of "stolen" revenue are upwards of 5 million USD. The discovery of Honey's practices has led to a class action lawsuit launched by Wendover Productions.

  • It is this practice in particular that has attracted legal attention, as several of Honey’s victims in this instance are/were attorneys who create content about legal controversies (such as LegalEagle and America’s Attorney). They have documented their view on the lawsuit here: https://honeylawsuit.com/

Sources/Links:[edit | edit source]

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