The Browser Extension You Trusted May Be Working Against You
Millions of people installed the Honey browser extension believing it would save them money. Then a YouTube investigation by MegaLag alleged the opposite: that the extension was quietly diverting affiliate commissions away from the creators who sent shoppers to a store. MegaLag’s multi-part investigation — beginning with “Exposing the Honey Influencer Scam” in December 2024 and continuing with follow-ups in December 2025 — racked up tens of millions of views, triggered class-action lawsuits, and, according to reporting from 9to5Google, coincided with a steep drop in Honey’s user base. PayPal, which owns Honey, disputes the allegations.
This piece is a guide, not a verdict: here’s what was actually alleged, where the legal fight stands, and — the part that outlasts any single scandal — how to vet a browser extension before you hand it the keys to your entire web session.
What Honey Was Alleged to Be Doing
MegaLag’s investigation centered on three claims. Each is an allegation drawn from his videos and subsequent reporting and litigation — not a settled finding of fact.
1. Replacing affiliate commissions
The core allegation, as MegaLag laid it out, is “last-click” attribution hijacking. When a shopper clicked a creator’s affiliate link and later opened Honey at checkout, the extension would — per the claim — insert its own tracking code, so the commission flowed to Honey rather than to the creator who drove the sale. MegaLag alleged this happened even when Honey surfaced no working coupon at all. This is the conduct at the heart of the lawsuits described below.
2. Steering shoppers away from better codes
The second allegation is that Honey’s merchant partnerships let stores influence which codes appeared. According to MegaLag, participating merchants could suppress better public coupons in favor of merchant-approved codes that offered smaller discounts — meaning the “best deal” a shopper saw was, the video claimed, the deal Honey was paid to show.
3. Data collection
Separately, 9to5Google reported on scrutiny of Honey’s data practices — that the extension collected more user data than a coupon tool would seem to require. As with the commission claims, these are reported concerns rather than adjudicated facts.
Where the Fallout Stands
The fallout has been real, but the details matter — and several threads are still open:
- User decline: 9to5Google reported that Honey’s Chrome user count fell from roughly 21 million to about 13 million as of its December 22, 2025 report. That figure is a snapshot tied to that date, not a running total.
- The LegalEagle suit: YouTube attorney LegalEagle (Devin Stone) sued Honey, as Dexerto reported. That initial class action was dismissed in November 2025; an amended complaint was filed in January 2026, so the case is ongoing rather than resolved.
- Other suits: Similar creator-affiliate litigation has reportedly targeted Capital One Shopping (per Tubefilter) and Microsoft Shopping (per Milberg) — a sign the dispute is about an industry-wide practice, not one extension.
- PayPal’s position: PayPal has disputed the allegations against Honey. The claims above remain contested and, where in court, unproven.
How to Vet Your Browser Extensions
Whatever a court ultimately decides about Honey, the durable lesson is about trust. A browser extension can read and alter the pages you visit, including checkout flows and login screens. That power is worth a few minutes of scrutiny before you install anything.
Check the permissions
Does a coupon finder really need to “read and change all your data on all websites”? Treat broad permissions that don’t match an extension’s stated job as a reason to pause, not a formality to click through.
Understand the business model
If a tool is free, ask how it pays for itself. Affiliate commissions and data monetization are common answers for “free” shopping helpers — and the Honey dispute is, at bottom, an argument about exactly that revenue mechanic.
Read recent reviews — not just the rating
A high star average can hide a recent turn. Skim the latest reviews for reports of odd behavior, performance drag, or privacy complaints.
Look for transparency
A clear, specific privacy policy that says what data is collected and why is a good sign. Vague boilerplate is a red flag.
Audit what you already run
Open chrome://extensions and review the list. Remove anything you don’t actively use or no longer recognize — every extension you keep is standing access you’ve granted.
The Bottom Line
The allegations against Honey are serious, contested, and partly still before the courts. You don’t have to wait for a verdict to act on the underlying point: convenience tools that sit between you and the web deserve the same scrutiny you’d give any app with deep access. Vet the extension, understand how it earns, and keep your list lean — both your privacy and the creators you mean to support depend on it.
Sources
- MegaLag, “Exposing the Honey Influencer Scam” (multi-part investigation, 2024–2025) — original reporting: youtube.com/@MegaLag
- 9to5Google, “Honey user data practices reports” (Dec 22, 2025) — user-count figures and data practices: 9to5google.com
- Dexerto — LegalEagle’s lawsuit against Honey: dexerto.com
- Tubefilter — Capital One Shopping creator-affiliate lawsuit: tubefilter.com
- Milberg — Microsoft Shopping affiliate class action: milberg.com
- Wikipedia, “PayPal Honey” — background: en.wikipedia.org/wiki/PayPal_Honey
