Nepali content creation is experiencing a remarkable rise, with creators gaining recognition not just locally but globally. Platforms like YouTube, TikTok, and Instagram have opened up new opportunities, and with this growth, brand deals and sponsorships are at an all-time high. From promoting local products to endorsing international brands, Nepali creators are carving out their space in the ever-growing digital economy. However, with this success comes the challenge of navigating partnerships responsibly, as recent global controversies, like the Honey Browser Extension Scam, reveal the risks of unchecked endorsements and poorly researched brand deals. This serves as a timely lesson for Nepali creators to be cautious as they embrace new opportunities.
The Honey Browser Extension, once promoted by hundreds of Youtube content creators as an effortless way to save money while shopping online, is now under fire for alleged unethical practices. After the takeover by PayPal in 2020, the extension is now called PayPal Honey.
It now faces accusations of misleading consumers, exploiting the affiliate marketing system, and undermining content creators who helped popularise it. Two class-action lawsuits have been filed against PayPal in the US District Court in California, alleging Honey unfairly hijacked affiliate commissions and failed to deliver on its promises to users.
The controversy on the Honey Browser Extension gained a huge spark after the video of Tech creator Megalag with a thorough investigative video on the details about how Honey operates. The revelations have sparked public backlash from influencers like Linus Tech Tips (LTT) and Marques Brownlee (MKBHD), leading to a broader discussion about the ethics of digital tools like Honey.
Honey Browser Extension: A tool for effortless savings?
Honey launched with a compelling promise: to save users time and money by automatically finding and applying the best coupon codes at checkout. The way the Honey Browser Extension works is simple: install the free extension, and it will find out discounts or coupons available on the internet.
Marketed as “free money,” Honey quickly became popular with online shoppers eager to save effortlessly. Its user-friendly design and compatibility with major e-commerce sites made it a must-have tool for millions, with over 17 million users currently.
The Honey Browser Extension was not limited to consumers. Influencers across platforms, from YouTube to social media, heavily promoted Honey, showcasing its convenience and savings potential. These promotions greatly uplifted its popularity and trustworthiness, making it one of the most downloaded browser extensions.
For businesses, the Honey Browser Extension promised to reduce the number of abandoned carts, a common e-commerce problem, and increase sales. By claiming to help shoppers save money while ensuring merchants gained more purchases, Honey presented itself as a win-win solution.
However, recent revelations have exposed practices of the Honey Browser Extension that raise serious ethical and legal concerns. Investigation by Megalag shows that Honey prioritised its own profits over providing real value to users or supporting the creators who promoted it. What once appeared to be a groundbreaking tool for online shopping is now under heavy scrutiny, with critics questioning the fairness and transparency of its business practices.
How it works and manipulates the system
The Honey Browser Extension claims to help users save money by finding and applying discounts from across the internet. However, as detailed in YouTuber MegaLag’s investigation, its operations often prioritise its own financial interests over the value it delivers to users. The extension’s back-end practices reveal a pattern of exploitation, particularly within the affiliate marketing system.
Affiliate marketing rewards individuals or entities, such as influencers or websites, for driving traffic or sales to a vendor’s site. When a user clicks an affiliate link, a small file called a cookie is stored in their browser, which tracks the referral.
If the user completes a purchase, the referrer earns a commission. MegaLag explained that most affiliate marketing systems operate on last-click attribution, meaning the entity that interacts with the user just before their purchase gets credit for the sale. “Affiliate marketing is fairly straightforward,” MegaLag noted. “The influencer who shares the link gets the cookie, and if you buy, they get a commission. But Honey changes the game completely by stealing that last click.”
One major criticism of Honey Bowser Extension is its practice of replacing legitimate affiliate cookies with its own. MegaLag explained that when users click an influencer’s link, a cookie tracks the referral to ensure the creator earns a commission.
However, when the Honey Browser Extension is activated at checkout, it opens a hidden tab to make it appear as though it referred the user to the site. This allows Honey to claim the commission, even if it did not contribute to the sale. MegaLag said, “Users don’t realise it’s happening, and creators lose their rightful earnings.”
Honey also introduced a cashback program called Honey Gold to encourage users to engage with the extension. While it rewards users with points that can be redeemed for discounts or gift cards, MegaLag revealed that these rewards are minimal compared to what Honey collects in commissions.
“In one test, Honey earned $35 from a sale, and I got just 89 cents in rewards,” MegaLag said. The cashback system ensures Honey remains the last referrer, allowing it to continue claiming commissions, even if its contribution is minimal.
Additionally, Honey prioritises discounts approved by merchants, even if better deals are available elsewhere. MegaLag noted that Honey often ignores user-submitted coupon codes, further limiting its ability to provide the best savings. “Honey claims to find the best deals, but it applies what merchants want you to see,” MegaLag said. “It’s not about helping users—it’s about serving its own interests.” These practices raise serious questions about Honey’s transparency and fairness to both users and creators.
MegaLag’s investigation shows that Honey uses questionable practices to benefit itself while harming creators, consumers, and businesses. By overriding affiliate cookies and prioritising discounts that merchants approve, Honey goes against the promises it markets to users. “Consumers think they’re getting a great deal,” MegaLag explained, “but Honey is really working for itself and its merchant partners, taking money from the creators who helped make it popular.”.
Backlash from influencers and creators
The fallout from MegaLag’s video has sparked significant backlash, with influencers addressing their past sponsorships with the Honey Browser Extension. While some creators have taken responsibility, others have faced criticism for their delayed responses.
One of the most notable names is MrBeast, the world’s most popular YouTuber, with over 300 million subscribers. Fans and critics alike are calling on him and his team to explain their involvement with Honey and provide clarity on their role in promoting the extension. This controversy has highlighted the growing demand for influencers to be more transparent and cautious about the products they endorse.
Among those who have responded, Linus Tech Tips (LTT) and Marques Brownlee (MKBHD) have taken different approaches to address the issue. Linus explained that his team stopped working with Honey in 2020 after discovering its affiliate cookie practices. At the time, they were unaware of other problems, such as Honey prioritising merchant-approved discounts over better deals for users.
Marques Brownlee apologised to his audience in a video, admitting he promoted the Honey Browser Extension without fully understanding its practices. He removed affiliate links from his videos and encouraged viewers to research such tools before using them. While some fans appreciated their honesty, others criticised them for not addressing these issues sooner. This situation has emphasised the responsibility creators have when endorsing products and the impact of their choices on their audiences.
Legal actions against it
The backlash against Honey has led to two class-action lawsuits filed in January 2025, accusing PayPal and Honey Browser Extension of unfairly claiming affiliate commissions and misleading consumers. Devin Stone, a lawyer and YouTuber known as LegalEagle, is one of the plaintiffs, calling Honey’s actions deceptive. Stone stated, “Honey is not providing the benefits they say they’re providing. They’re telling retailers they were responsible for a sale when they were not.” The lawsuits seek damages and changes to Honey’s affiliate practices.
The controversy surrounding the Honey Browser Extension has had widespread consequences for consumers, creators, and businesses. Users are misled into believing they are getting the best deals, while Honey prioritises merchant-approved discounts over better ones.
Creators lose significant earnings as Honey overrides their affiliate cookies, eroding trust in the affiliate marketing system. Businesses face financial losses from unauthorised discounts, often leading to higher prices for customers. Once celebrated as a revolutionary tool, Honey now faces lawsuits and growing scrutiny over its practices.
This situation highlights the importance of transparency and accountability in digital tools, reminding consumers and creators alike to critically evaluate the platforms they use and promote. As MegaLag stated, “Honey isn’t just a broken promise; it’s a betrayal of everyone it claimed to help.”
How Nepali Creators Can Stay Safe from Similar Scams
The controversy surrounding the Honey Browser Extension serves as an important lesson for Nepali content creators navigating the growing digital economy. With the rise of affiliate marketing and brand partnerships in Nepal, creators must exercise caution by thoroughly understanding agreements, verifying company claims, and staying informed about industry practices to maintain audience trust.
Open discussions within creator communities and access to resources from supportive organisations can help identify and avoid unethical partnerships. Learning from global cases like the Honey Browser Extension scandal, Nepali creators can take a proactive approach to protect their content, revenue, and reputation, ensuring they make informed decisions in the rapidly changing online space.
