A viral exposé from YouTuber MegaLag has shaken up the online shopping and influencer marketing worlds. In a December 21 video titled “Exposing the Honey Influencer Scam,” the New Zealand-based tech investigator accused PayPal and its Honey browser extension of fraudulent practices affecting both shoppers and content creators. The video, which has garnered over 13 million views by December 30, is stirring controversy and sparking debates across the internet.
MegaLag alleges that Honey exploits affiliate marketing practices to hijack influencer commissions while also misleading users about discounts. PayPal, which acquired Honey for $4 billion in 2020, is facing a wave of backlash as the claims continue to spread.
Allegations of Fraud Rock Influencer Marketing
At the heart of MegaLag’s allegations is the practice of “last-click attribution,” where Honey reportedly intercepts sales originally directed by influencers and redirects affiliate commissions to itself. In simple terms, if an influencer convinces someone to buy a product, Honey allegedly steps in at checkout to claim the credit—and the payout.
“PayPal didn’t do the work. Influencers did,” MegaLag said. “But Honey swoops in at the last second and steals the commission.”
Content creators have accused Honey of undermining their efforts. According to MegaLag, Honey’s tactics amount to little more than a scam, with claims that the service also promotes less favorable discount codes for shoppers. Instead of finding the best deals, Honey allegedly displays codes that benefit its own bottom line.
PayPal’s $4 Billion Bet on Honey Now Under Fire
When PayPal purchased Honey in 2020, it heralded the acquisition as a way to revolutionize online shopping. With 17 million monthly users at the time, Honey promised convenience and savings for consumers. But recent data suggests cracks in its foundation.
Following MegaLag’s video, Honey reportedly lost 3 million users in less than two weeks, dropping back to its original 17 million users from a high of 20 million earlier in December. Newsweek corroborated these figures using historical snapshots from the WayBackMachine.
While a Honey spokesperson defended the company’s practices, stating, “Honey follows industry rules and practices, including last-click attribution,” the accusations have nonetheless cast a shadow over PayPal’s investment.
Industry Reactions: Influencers Speak Out
MegaLag’s video has triggered a cascade of reactions from prominent YouTubers and social media influencers who once partnered with Honey. Many are now distancing themselves from the company.
- Austin Evans, a tech YouTuber with over 5.6 million subscribers, declared: “It’s unacceptable. Honey promised savings but instead deceived both influencers and shoppers.”
- Hank Green, another YouTube creator, called out both Honey and PayPal, saying, “They’re stealing and lying. It’s a scam at every level.”
- Markiplier, a gaming YouTuber with 37.2 million subscribers, cryptically posted on X: “I KNEW IT!!!”
The controversy has even prompted former Honey partners, like Linus Media Group, to reveal past grievances. Linus Media Group had ended its partnership with Honey back in 2022, citing its interference with affiliate tracking. A spokesperson commented: “Honey would override our affiliate links, even if it didn’t find the user a better deal. That didn’t sit right with us.”
What’s at Stake for PayPal?
The fallout from these allegations extends beyond consumer trust. Influencers and content creators are now calling for transparency and fair compensation, and many are eyeing potential legal action.
Online chatter about a potential class-action lawsuit against Honey and PayPal has gained momentum. “The class action lawsuit against Honey (PayPal) is going to be next level once the influencers get involved,” tweeted @christinelu, a popular account on X.
PayPal’s reputation could also take a significant hit. The allegations undermine trust in Honey’s core value proposition: finding the best deals for shoppers. If these claims hold water, PayPal could face not just lawsuits but also regulatory scrutiny and a broader loss of consumer confidence.
The Next Chapter in MegaLag’s Investigation
MegaLag has promised more revelations, teasing a second installment in his series. In the conclusion of his first video, he hinted at even more troubling practices, saying, “Once I figured out what was missing, I uncovered an even darker side to PayPal’s scam.”
With millions eagerly awaiting the next video, the saga is far from over. Influencers and shoppers alike are watching closely, hoping for answers—and accountability.
