In recent weeks, an in-depth investigation by MegaLag has uncovered troubling practices behind the popular Honey browser extension, a tool commonly used to find online discounts and coupon codes. While Honey markets itself as a savior for consumers looking to score the best deals, its operations may not be as transparent or consumer-friendly as they appear. This guide will break down the findings of MegaLag’s investigation, explaining how Honey allegedly manipulates affiliate commissions, misleads consumers about coupon codes, and exploits influencers.
How Honey Claims to Work vs. How It Actually Works
At first glance, Honey seems like a great deal for online shoppers. The extension automatically searches for coupon codes when you’re at the checkout stage of an online purchase, promising to find you the best possible discounts. However, MegaLag’s investigation reveals that Honey’s claims might be misleading.
- The Coupon Code Lie: One of the major revelations is that Honey often fails to deliver the best discounts. Users have reported that Honey frequently claims it can’t find any coupon codes, yet they were able to manually discover working codes. When Honey does find a code, it’s often one that’s Honey-branded, such as “Honey 5” or “Honey 10,” which may not offer the best discounts available. Even more concerning is that when users submitted better coupon codes, Honey didn’t add them to its database.
- Why This Matters: By only offering a limited set of codes, particularly those that benefit Honey directly, the platform is essentially steering consumers toward less valuable discounts, all while advertising itself as the go-to for the best deals.
Honey’s Relationship with Brands: Manipulating Discounts
Another troubling aspect of Honey’s operations is how it manages partnerships with brands. According to MegaLag’s investigation, Honey allows brands to control which coupon codes are shared through the platform.
- Brand Control Over Coupons: If a store offers a 20% off coupon, but prefers that only a 5% discount is shared, Honey will comply. This means that even when better discounts are available, they may not appear on Honey because the brand doesn’t want it to be shared. This practice directly undermines Honey’s promise of finding the best deals for consumers.
- What This Means for Consumers: Consumers may be led to believe they’re getting the best discount, when in reality, they might be getting a less valuable deal because the platform is prioritizing the store’s preferences over the consumer’s savings.
The Impact on Influencers Affiliate Commissions Stolen
Influencers, who rely on affiliate marketing to earn commissions, have been severely impacted by Honey’s practices. When an influencer shares an affiliate link and a consumer installs the Honey extension, Honey may override the influencer’s referral link.
- How Honey Steals Affiliate Commissions: If a consumer clicks on an influencer’s affiliate link but then uses Honey, Honey will steal the commission, regardless of whether the consumer finds a discount or not. This undermines the influencer’s ability to earn revenue from their recommendations.
- What This Means for the Affiliate Marketing System: Honey’s behavior has shaken the affiliate marketing ecosystem, where businesses rely on influencers to promote products. By overriding affiliate links, Honey effectively skims commission from the influencer without offering any real benefit to the consumer beyond potential savings, further fueling the exploitative nature of the platform.
Is Honey’s Behavior Legal?
As MegaLag’s investigation reveals, Honey’s business model appears to be based on deceptive practices. While the platform is still operational, questions about the legality of its operations remain. Consumers and influencers alike are left wondering whether Honey’s actions are fully compliant with advertising and affiliate marketing laws. Given that Honey’s behavior has been described as exploiting its partners and consumers, there is a strong argument that these practices are at least ethically questionable, if not outright fraudulent.
- Legal Loopholes or Fraud?: Although it’s hard to say definitively whether Honey’s practices are illegal, MegaLag’s investigation casts doubt on its legitimacy. With so much money at stake, it’s likely that there will be legal challenges as more consumers and businesses become aware of Honey’s practices.
MegaLag’s investigation into Honey has revealed that, while the platform may offer some benefits, its underlying business practices are deeply exploitative. From stealing affiliate commissions to withholding the best deals, Honey is more interested in its own financial gain than genuinely helping consumers save money. For anyone using the platform, this is a wake-up call.
Moving forward, being more mindful of the tools you use and the impact they have on your financial well-being is crucial. Whether you’re a consumer, an influencer, or a brand, it’s time to reevaluate your relationship with Honey and consider more transparent alternatives.