Please note that all submissions to the site are subject to the wiki's licence, CC 4.0 BY-SA, as found here
PayPal Honey: Difference between revisions
From Consumer Action Taskforce
Jump to navigationJump to search
m Fixed citation typo |
Improved formatting, removed policies section, overhaul of consumer protection profile |
||
| (One intermediate revision by the same user not shown) | |||
| Line 3: | Line 3: | ||
== Consumer Protection Profile == | == Consumer Protection Profile == | ||
Honey's | ==== Privacy ==== | ||
'''Status:''' Significant Concerns | |||
* 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"]. October 28, 2024. ''PayPal Honey''. Retrieved January 15, 2025.</ref> | |||
* Tracks detailed shopping behavior, including purchases, returns, and browsing patterns<ref name="privacy-policy"/> | |||
* Shares data with PayPal companies and merchant partners<ref name="privacy-policy"/> | |||
* Creates inference profiles based on shopping patterns and preferences<ref name="privacy-policy"/> | |||
* Retains data for up to 10 years after account closure<ref name="privacy-policy"/> | |||
==== Transparency ==== | |||
'''Status:''' Significant Concerns | |||
* 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> | |||
* Hidden redirect mechanisms affecting commissions<ref name="megalag-video"/><ref name="techopedia-article"/> | |||
* Selective display of coupon codes based on undisclosed partner agreements<ref name="megalag-video"/><ref name="techopedia-article"/> | |||
* Subject to multiple ongoing class action lawsuits regarding 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> | |||
==== Freedom ==== | |||
'''Status:''' Significant Concerns | |||
* Consumer choice restricted by intentionally hidden discounts and deals<ref name="megalag-video"/><ref name="techopedia-article"/> | |||
* Users unable to make informed decisions due to selective deal display<ref name="megalag-video"/><ref name="techopedia-article"/> | |||
* No user control over partner-privileged discount system<ref name="megalag-video"/><ref name="techopedia-article"/> | |||
* Mandatory acceptance of arbitration clause with class action waiver<ref name="terms-of-use">[https://www.joinhoney.com/terms "Terms of Use"]. January 16, 2024. ''PayPal Honey''. Retrieved January 15, 2025.</ref> | |||
* Service can be terminated at PayPal's discretion without notice<ref name="terms-of-use"/> | |||
* Users forced to accept terms modifications without direct notification<ref name="terms-of-use"/> | |||
== Consumer Protection Incidents == | == Consumer Protection Incidents == | ||
=== Content Creator Lawsuits (Dec. 2024) === | ==== 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 | 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 name="wendover-v-paypal"/> | ||
[[Gamers Nexus, LLC]] later filed a class action suit against [[PayPal Holdings, Inc.]] in January 2025 highlighting the same issues.<ref | [[Gamers Nexus, LLC]] later filed a class action suit against [[PayPal Holdings, Inc.]] in January 2025 highlighting the same issues.<ref name="gamersnexus-v-paypal-holdings"/> | ||
=== Affiliate Tampering Controversy (Dec. 2024) === | ==== 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: | 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: | ||
| Line 25: | Line 43: | ||
* Claim the commission that was intended for the original content creator | * 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 | 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"/> | |||
== References == | == References == | ||
| Line 46: | Line 51: | ||
== See Also == | == See Also == | ||
[[CapitalOne Affiliate Lawsuit]] | [[CapitalOne Affiliate Lawsuit]] | ||
Latest revision as of 19:01, 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[edit | edit source]
Privacy[edit | edit source]
Status: Significant Concerns
- Collects extensive personal identifiers including name, email, IP address, and device IDs[3]
- Tracks detailed shopping behavior, including purchases, returns, and browsing patterns[3]
- Shares data with PayPal companies and merchant partners[3]
- Creates inference profiles based on shopping patterns and preferences[3]
- Retains data for up to 10 years after account closure[3]
Transparency[edit | edit source]
Status: Significant Concerns
- Undisclosed manipulation of affiliate marketing links[4][5]
- Hidden redirect mechanisms affecting commissions[4][5]
- Selective display of coupon codes based on undisclosed partner agreements[4][5]
- Subject to multiple ongoing class action lawsuits regarding deceptive practices[6][7]
Freedom[edit | edit source]
Status: Significant Concerns
- Consumer choice restricted by intentionally hidden discounts and deals[4][5]
- Users unable to make informed decisions due to selective deal display[4][5]
- No user control over partner-privileged discount system[4][5]
- Mandatory acceptance of arbitration clause with class action waiver[8]
- Service can be terminated at PayPal's discretion without notice[8]
- Users forced to accept terms modifications without direct notification[8]
Consumer Protection Incidents[edit | edit source]
Content Creator Lawsuits (Dec. 2024)[edit | edit source]
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.[6]
Gamers Nexus, LLC later filed a class action suit against PayPal Holdings, Inc. in January 2025 highlighting the same issues.[7]
Affiliate Tampering Controversy (Dec. 2024)[edit | edit source]
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."[4]
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."[5]
References[edit | edit source]
- ↑ 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.
- ↑ 3.0 3.1 3.2 3.3 3.4 "PayPal Honey Privacy Statement". October 28, 2024. PayPal Honey. Retrieved January 15, 2025.
- ↑ 4.0 4.1 4.2 4.3 4.4 4.5 4.6 MegaLag (December 21, 2024). "Exposing the Honey Influencer Scam". YouTube. Retrieved January 15, 2025.
- ↑ 5.0 5.1 5.2 5.3 5.4 5.5 5.6 Fernandez, Ray (December 24, 2024). "Is PayPal's Honey Misleading Users? We Investigate". Techopedia. Retrieved January 15, 2025.
- ↑ 6.0 6.1 "Wendover Productions, LLC v. PayPal Inc, 5:24-cv-09470, (N.D. Cal.)". courtlistener.com. Free Law Project. Retrieved January 15, 2025.
- ↑ 7.0 7.1 "GamersNexus, LLC v. PayPal Holdings, Inc., 5:25-cv-00114, (N.D. Cal.)". courtlistener.com. Free Law Project. Retrieved January 15, 2025.
- ↑ 8.0 8.1 8.2 "Terms of Use". January 16, 2024. PayPal Honey. Retrieved January 15, 2025.
