Biggest Scam in Youtube History

Summary

In this eye-opening investigation by Mega lag, it’s revealed that Honey, the popular coupon-finding browser extension owned by PayPal, manipulates affiliate commissions by replacing influencer referral links with its own at checkout. This deceptive practice allows Honey to pocket commissions that should go to content creators. Beyond that, Honey withholds better discount codes in favor of lower ones when partnered brands request it, misleading consumers. The investigation sheds light on Honey’s exploitative business model, raising questions about the legality and ethics behind its operations, and suggests the potential for a massive class-action lawsuit.

Takeaways

• 😀 Honey may not always find the best discounts, as it prioritizes deals that benefit its corporate partners over consumers.
• 😀 If a brand doesn't want a certain discount code to be shared, Honey complies and withholds it, potentially offering a lower discount instead.
• 😀 Honey manipulates affiliate tracking, stealing commission fees that should go to the content creators who originally referred the user to the website.
• 😀 Despite claiming to offer the best deals, Honey may intentionally limit or withhold coupons that could benefit the consumer.
• 😀 When using Honey, if it's the last extension clicked, it can claim the sale and take affiliate commissions even if it didn’t find any discount codes.
• 😀 Honey’s business model involves taking credit for sales even when it does not provide any meaningful benefit, such as applying coupons.
• 😀 The system works by replacing affiliate links with Honey’s own, which means content creators lose their rightful commissions.
• 😀 Honey's claim to provide the best deals is misleading, as they prioritize profits over giving consumers the most effective discounts.
• 😀 The investigation reveals how Honey's actions could be seen as fraudulent, manipulating both consumers and affiliate marketers for profit.
• 😀 Mega Lag’s deep dive exposes how Honey’s operations are centered around exploiting both consumers and content creators through hidden affiliate link manipulation.

Q & A

What is the main focus of Mega Lag's investigation into Honey?

Mega Lag's investigation focuses on exposing how PayPal's Honey browser extension allegedly manipulates consumers by stealing affiliate commissions and deceiving users about finding the best deals. The investigation reveals deceptive practices that undermine the original purpose of the extension.

How does Honey steal affiliate commissions from content creators and influencers?

Honey allegedly replaces affiliate links with its own when users make purchases, which allows Honey to capture the commission that would have gone to the content creator or influencer. This is done under the guise of finding deals, but Honey takes the credit instead.

Why does Honey withhold certain discount codes from consumers?

Honey sometimes withholds better discount codes if the brands request it. Brands may prefer to limit the sharing of certain deals, and Honey complies by not presenting those discounts to consumers, even if they are available elsewhere.

How does Honey affect the discounts that consumers see at checkout?

Honey affects discounts by only applying its own coupons, even if better discounts are available. If a brand limits Honey's access to certain discounts, users may be shown subpar deals, which undermines the purpose of the tool, which is to find the best possible deals.

What is the role of Honey Gold, and how does it contribute to commission theft?

Honey Gold is a rewards program that encourages users to activate it when making a purchase. However, it is also a method for Honey to secure the 'last click,' allowing them to steal the affiliate commission, even if no discount is applied or if no useful deal is found.

Does Honey always find the best deals for consumers?

No, Honey does not always find the best deals. Sometimes it only shows deals that benefit Honey's own interests, rather than presenting the most advantageous discounts available for consumers.

How does the 'last click' fraud work with Honey?

The 'last click' fraud occurs when Honey is the final interaction a user clicks before completing their purchase. Even if Honey is not offering a valid discount, the affiliate commission is still diverted to Honey because it captured the last click before checkout.

What is the potential legal issue with Honey's practices?

Honey's practices may be legally questionable because they involve fraudulent commission theft and potentially violate affiliate marketing agreements. If proven, these actions could lead to lawsuits or regulatory scrutiny over deceptive business practices.

Why does Mega Lag believe Honey's business model is exploitative?

Mega Lag argues that Honey's business model is exploitative because it deceives consumers into believing they are getting the best deals while also siphoning off commissions from affiliates. This creates an unfair system that benefits Honey at the expense of consumers and influencers.

What are the broader implications of the investigation for online shoppers and influencers?

The broader implications are that online shoppers may be unknowingly paying more than they need to, while influencers and content creators lose potential earnings due to Honey stealing affiliate commissions. This could result in a significant shift in how people perceive and use tools like Honey in the future.