Honey is a browser extension now owned by PayPal. It promised cheap deals to the user by automatically searching for vouchers and applying them at checkout. However, there seems to be some possible foul play in the way that it worked.
Honey was adding itself as a referrer which sounds logical if the user has made their own way there. Referral links give a financial kickback to the referrer so would be fine to give Honey some credit for assuring the end user completes the purchase.
The end user uses honey with the promise of searching for valid voucher codes to save further money. However, even when Honey couldn’t find anything, they still stole the referral. To the end user, this didn’t affect them because it was the referrer that was missed out. So all those YouTubers that had affiliate links will have lost out money, or future affiliate deals and sponsorships.
The ironic thing is that Honey gained a lot of new users from YouTube partnerships themselves. So YouTube audience would install the Honey extension, then any future affiliate links from the YouTuber (and any other YouTuber) would be then hijacked by Honey. So the YouTuber has been completely scammed but would be unaware it was happening at all.
There was another suggestion that Honey even did deals with shops to limit the discounts offered. So if there was a voucher available for 20% off, they would lie and say they have found 10% off. So Honey promised to find the best deal for you without you making any effort, but they were just finding mediocre deals for you and you could have got a better deal if you did put the effort in.
For some sales, you could say that the value proposition to retailers is dubious since they are giving customers discounts on products they were already about to buy.
Legal Eagle is filing a lawsuit against them, which is going to be interesting to see the outcome. I’m Suing Honey .