PayPal's Honey browser extension, a popular tool for finding online coupons, has been accused of "stealing money" from influencers and creators. A recent video by YouTuber MegaLag has sparked a controversy, alleging that Honey uses a last-click attribution approach to hijack affiliate links and deprive creators of their earnings.

The video, which has gained significant attention, claims that Honey's extension replaces creators' affiliate links with its own, even if it's not offering shoppers a better deal. This practice, known as last-click attribution, gives credit for a sale to the owner of the last affiliate cookie in line before checkout. According to MegaLag, Honey takes advantage of this approach to swap its tracking cookie in for others', effectively "stealing money" from influencers.

PayPal has responded to the allegations, stating that Honey follows "industry rules and practices" like last-click attribution. However, creators who claim to have missed out on earnings due to Honey's practices are not convinced. YouTuber Legal Eagle and GamersNexus are among those who have filed lawsuits against PayPal, accusing Honey of intentionally replacing creators' affiliate links with its own.

The lawsuit filed by Legal Eagle's Eagle Team LLP and several other YouTubers' businesses alleges that Honey's practices are deceptive and unfair. The proposed class-action lawsuit, filed in California's Northern District Court, seeks to hold PayPal accountable for Honey's actions. GamersNexus has also joined the lawsuit, further escalating the controversy.

The allegations against Honey have sparked a wider debate about online shopping referrals and affiliate marketing practices. Critics argue that Honey's approach is unfair and deceptive, while PayPal maintains that it follows industry standards. As the controversy continues to unfold, it remains to be seen how the lawsuits will impact PayPal's Honey extension and the broader affiliate marketing landscape.

In the meantime, creators and influencers are advised to be cautious when using Honey's extension, as they may be unwittingly losing earnings due to its practices. The controversy serves as a reminder of the importance of transparency and fairness in online marketing practices, and the need for companies to prioritize ethical behavior in their dealings with creators and consumers.