PayPal Honey Browser Extension Scam Lawsuit Investigation

On January 14, 2025, our consumer protection attorneys filed a lawsuit against PayPal, on behalf of social media content creators who may have been cheated out of commissions by the web browser extension, PayPal Honey (“Honey”). The lawsuit alleges, among other things, that PayPal Honey used to replace content creator’s tracking tags with its’ own tracking tags so that it could get credit as the referrer of specific products or services, therefore depriving content creators of their earned referral fees and commission payments.

YouTuber MegaLag Claims to Expose a Massive Honey Commission Scam

An investigation by YouTuber MegaLag uncovered that Honey may have been stealing sales commissions from influencers by swapping in its own affiliate cookies when a consumer clicks on the Honey extension —thus taking credit for the influencer’s sale. MegaLag released a video in December 2025 highlighting his allegations and evidence for this claim.

Honey, which is owned and operated by PayPal, is a free browser extension that claims to automatically find and apply coupon the best codes at checkout with a single click. In December 2024, YouTuber MegaLag released a video accusing Honey of being a “scam” that deceptively steals money from the influencers who promote it. In his video, MegaLag explains that there is an industry standard called “last click attribution” which gives credit to the last link or website a consumer clicked on before making a purchase. Honey allegedly uses a sneaky process of swapping in its own tracking cookies at the end of the consumer’s purchasing journey, to essentially guarantee it will “win” the last click, so that Honey gets any commissions for the sale, rather than the individual or site that influenced the consumer to buy the product(s).

MegaLag reached out to Honey in late 2024, which appeared to confirm it used to engage in this practice:

If Honey is activated and is the last program used while shopping on a site, it is likely Honey will receive credit for the purchase

Honey representative in an email to MegaLag

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Rosemary is devoted to obtaining justice for consumers in lawsuits involving claims of false advertising, defective products, and privacy violations.

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Our Results in Consumer Cases

We have prevailed against some of the world’s largest corporations, in high stakes litigation on behalf of millions of consumers, including:

Apple iPod Battery Lawsuit

$15 Million Settlement

Chase Checkloan Lawsuit

$100 Million Settlement

Hyundai Fuel Economy Lawsuit

$125 Million Settlement

Kia Horsepower Lawsuit

$210 Million Settlement