Is Honey Web Browser Extension safe for you? MegaLag’s investigation reveals deceptive practices

A recent investigation by MegaLag has revealed potentially deceptive practices by Honey, the popular browser extension that promises discount codes to online shoppers. Despite its free nature, the study suggests that honey can mislead consumers and unfairly benefit companies.

A recent investigation by MegaLag has shed light on potentially deceptive practices by Honey, the popular web browser extension that promises consumers discount codes for online shopping. Despite its free and widely promoted nature, the study suggests that honey can cost consumers money and unfairly benefit companies.

An important tool to encourage purchase

Launched in 2012, Honey quickly gained popularity after being leaked on Reddit and went viral. By 2014, the extension had already gathered over 900,000 users. This growth coincided with the rise of online shopping, where discount codes became an essential tool to encourage purchases. Businesses started using discount codes to offer generic or personalized discounts and attract more customers.

The promise of Honey was simple and appealing: Install the extension and it would automatically apply the best discount codes available, even if you missed them during your shopping. Many users, including the author, have experienced the frustration of missing out on discounts, which makes Honey’s offer very tempting.

As the platform grew, Honey attracted millions of dollars in funding. In 2020, PayPal recognized its potential and bought Honey for $4 billion and renamed it PayPal Honey.

How honey can cost you money

While Honey’s message to consumers seemed straightforward, MegaLag’s investigation reveals that the extension may have been misleading users, often benefiting businesses and Honey itself. The idea was that Honey would automatically apply the best available discount codes, ensuring that users always get the best deal. However, what MegaLag revealed is far from reassuring.

According to MegaLag, discount codes often create complications for companies. “Every single time a discount code is created, the same conversation happens: ‘What happens if this leaks on Reddit?'” When discount codes are leaked, Honey’s role was initially to retrieve them and apply them to users, even if they were unintentional of the company.

But over time, Honey started partnering with companies to offer specific discounts, such as the “HONEY10” code for 10% off. The study highlights instances where Honey would promote these codes and disregard those that yielded greater savings. As a result, the very tool designed to save consumers money may have encouraged them to settle for smaller discounts.

In these cases, Honey’s extension inadvertently misled consumers into thinking they were getting the best deal possible, when in reality they were missing out on bigger savings.

Impact of Honey on Influencers

MegaLag’s study also delves into the impact of Honey on influencers, particularly those who have promoted the expansion, such as Linus Tech Tips and Marques Brownlee. The investigation reveals a worrying aspect of Honey’s behavior – how it steals credit for sales generated by influencers through affiliate marketing.

Affiliate marketing is common in the online world. Influencers or platforms like Goosed can recommend products and include affiliate links. When users buy through these links, the influencer or platform earns a small commission without affecting the price for the consumer. But according to MegaLag, if a user has Honey installed and clicks on an affiliate link, Honey’s algorithm takes credit for the sale and redirects revenue away from the influencer or platform.

While the impact on revenue channels for influencers like Goosed may not be directly felt, the broader issue is Honey’s deceptive practices, which mislead consumers and divert resources from those who actually contributed to sales.

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