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PayPal Honey: Difference between revisions
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[[File:Honey Logo.png|thumb|The textmark for Honey by PayPal, formerly "Honey"]] | [[File:Honey Logo.png|thumb|The textmark for Honey by PayPal, formerly "Honey"]] | ||
Honey (now PayPal Honey) is a browser extension and platform owned by PayPal Holdings, Inc. 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 | Honey (now PayPal Honey) is a browser extension and platform owned by PayPal Holdings, Inc. 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 Protection Profile == | == Consumer Protection Profile == | ||
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== Consumer Protection Incidents == | == Consumer Protection Incidents == | ||
=== | === Content Creator Lawsuits (Dec. 2024) === | ||
In December 2024, a class action lawsuit was filed against [[PayPal, Inc.]] 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>[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> | |||
[[Gamers Nexus, LLC]] later filed a class action suit against [[PayPal Holdings, Inc.]] in January 2025 highlighting the same issues.<ref>[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> | |||
=== 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>MegaLag (December 21, 2024). [https://www.youtube.com/watch?v=vc4yL3YTwWk "Exposing the Honey Influencer Scam"]. ''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 == | ||
Revision as of 17:40, 15 January 2025
Honey (now PayPal Honey) is a browser extension and platform owned by PayPal Holdings, Inc. since its acquisition for $4 billion in 2020.[1] 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.[2]
Consumer Protection Profile
CAT Rating: 1/3
Honey's approach to consumer protection has faced significant scrutiny, particularly regarding its data collection practices and business model. The company's operations have raised concerns in three main areas:
- Treatment of consumer data and privacy
- Transparency about coupon-finding methodology
- Impact on affiliate marketing ecosystem
Consumer Protection Incidents
Content Creator Lawsuits (Dec. 2024)
In December 2024, a class action lawsuit was filed against PayPal, Inc. 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.[3]
Gamers Nexus, LLC later filed a class action suit against PayPal Holdings, Inc. in January 2025 highlighting the same issues.[4]
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."[5]
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."[6]
Consumer Rights Policies
Data Collection and Privacy
Honey collects and shares the following data:[7]
- Browsing data related to shopping activities
- User interactions with retail websites
Terms of Service
The mandatory terms of service include:[8]
- Users must submit to data collection practices
- The service can be terminated at PayPal's discretion
- Changes to terms can be made without direct notification
References
- ↑ Perez, Sarah (November 20, 2019). "PayPal to acquire shopping and rewards platform Honey for $4B". TechCrunch. Retrieved January 15, 2025.
- ↑ Metcalf, Tom; Verhage, Julie (January 28, 2020). "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.
- ↑ " Wendover Productions, LLC v. PayPal Inc, 5:24-cv-09470, (N.D. Cal.)". courtlistener.com. Free Law Project. Retrieved January 15, 2025.
- ↑ " GamersNexus, LLC v. PayPal Holdings, Inc., 5:25-cv-00114, (N.D. Cal.)". courtlistener.com. Free Law Project. Retrieved January 15, 2025.
- ↑ MegaLag (December 21, 2024). "Exposing the Honey Influencer Scam". YouTube. Retrieved January 15, 2025.
- ↑ Fernandez, Ray (December 24, 2024). "Is PayPal's Honey Misleading Users? We Investigate". Techopedia. Retrieved January 15, 2025.
- ↑ "PayPal Honey Privacy Statement". October 28, 2024. PayPal Honey. Retrieved January 15, 2025.
- ↑ "Terms of Use". January 16, 2024. PayPal Honey. Retrieved January 15, 2025.
