The creator economy is built on trust between creators and their audiences and between creators and the companies they promote.
Honey, a browser extension owned by PayPal, has shattered that trust. Marketed as a money-saving tool, Honey has been exposed for undermining creators by hijacking their affiliate commissions.
This controversy has sent shockwaves through the creator community and raised serious questions about transparency and fairness in affiliate marketing.
What Is Honey and How Does It Work?
Honey is a free browser extension that claims to automatically find the best coupon codes and apply them at checkout, saving users money effortlessly.
Its simple promise made it a hit, with millions of users and endorsements from top YouTubers. For years, creators promoted Honey as a must-have tool for savvy shoppers. However, behind this façade of convenience lay a system that was far from fair.
The extension’s true power lies in its ability to manipulate affiliate marketing. Affiliates earn commissions by referring shoppers through tracking links.
But Honey steps in at the final purchase stage, replacing the affiliate’s link with its own. This practice guarantees that Honey claims the commission even when it has contributed nothing to the sale. As one creator put it, “It’s so frustrating! They are making millions on our hard work!”
The Dark Side of Honey
Honey’s exploitation of a ” last-click attribution system is at the heart of the scandal.” In affiliate marketing, the last referral link clicked before a purchase receives the commission.
Honey takes full advantage of this by activating it during checkout, ensuring it becomes the last click every time. This practice effectively strips commissions from creators, even if the shopper arrived at the store through a creator’s link.
Justin Germino, a technology expert, called the practice “insane and infuriating,” especially given Honey’s widespread use.
Another creator, Ehud Segev, explained the technical mechanics: “They use their offsite tracking ID by opening a new tab with an external link, overriding all onsite tokens. No matter what video shoppers watch, creators don’t get paid. It’s the biggest scam ever!”
The financial implications for creators are enormous. One influencer estimated losing $35 in commission on a single sale, while Honey rewarded the shopper with just 89 cents in cash back.
“They’re not just taking commissions,” said Margarita Terterian. “This isn’t just Amazon it’s happening across all affiliate programs. Honey, Rakuten, Ebates… they’re all doing it.”
The Whistleblowers and Timeline of Exposure
This controversy didn’t come to light overnight. It took years of investigation and whistleblowing to uncover the extent of Honey’s actions.
The first significant alarm was raised by Linus Tech Tips, one of Honey’s high-profile partners, who ended their sponsorship in 2022 after realizing how Honey undermined affiliate links. In 2023, the creator Mega Lag conducted an in-depth investigation, exposing the full scope of the issue.
By 2024, the scandal had reached a boiling point, with creators speaking out and audiences questioning their use of the extension. As Mashav Shelef expressed, “Is there a class action lawsuit in the works? This cannot be legal!”
Honey’s Double Messaging
Honey’s business model thrives on a clever double message. To users, it promises to find the best deals on the internet.
To businesses, it offers control over which coupons appear. This ensures that even when better deals exist, Honey applies less valuable discounts, keeping consumers in the dark.
One creator summed it perfectly: “They hijack shoppers’ computers, override tokens, and block creators from earning what they deserve.”
This deceit robs creators of their commissions and misleads consumers into thinking they are saving money.
Honey’s practices often prevent users from accessing the best discounts while prioritizing transparency over its business relationships.
The Fallout for Creators and Consumers
The financial toll on creators has been devastating. Affiliate marketing is a key revenue stream for many, and Honey’s actions have betrayed them.
Influencers who once trusted Honey now warn others to steer clear. “It’s not just about the money,” said one creator. “It’s about the principle undermining the trust we’ve built with our audiences.”
Consumers, too, have paid a price. By relying on Honey, they unknowingly contribute to a system prioritizing corporate profit over genuine savings. Many users are now questioning whether they should continue using the extension.
What Can Be Done?
The Honey scandal has sparked a movement for change within the creator economy. To protect their work and earnings, creators are taking the following steps:
Uninstall Honey: Creators are urging users to remove the extension. “It’s time to stop enabling this,” one influencer said. “Uninstall it and support creators directly through legitimate affiliate links.”
Educate Audiences: Many influencers openly discuss the issue to inform their followers. They hope to prevent others from committing similar scams by spreading awareness.
Seek Ethical Partnerships: Creators turn to brands and platforms that prioritize fairness and transparency. “We need to support companies that respect creators’ work,” said a leading influencer.
As the dust settles, the Honey scandal has left lasting damage. It has exposed the vulnerabilities in affiliate marketing and highlighted the need for stricter regulations. While some creators have severed ties with Honey, the broader issue remains: how can the creator economy ensure fair treatment in an increasingly competitive digital landscape?
The fallout from this controversy is far from over. It serves as a stark reminder that not all tools are as helpful as they claim to be. For creators and consumers alike, this is a moment to demand accountability and transparency before the following “free” tool turns out to have an even higher cost.
