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Gamers Nexus is suing Honey and PayPal for allegedly scamming influencers out of affiliate marketing money through “deceptive practices”.
YouTube content creator Gamers Nexus is suing PayPal and Honey over alleged deceptive practices. Honey, which PayPal owns, is a browser extension that allegedly scammed influencers and their audiences.
Gamer Nexus’ founder, Steve Burke, said that his group is filing a lawsuit on anti-consumer behavior grounds for “consumers directly.” He said that Gamers Nexus would donate the money that it would hypothetically receive from a court decision to consumer rights organizations.
The controversy around Honey began when YouTuber MegaLag shared hidden details about the browser extension. He found that the extension was changing affiliate links and “scamming” influencers out of potential referral income.
Gamers Nexus Is Suing Honey and PayPal
Honey was founded by Ryan Hudson and George Ruan in 2012, and it gained almost a million users by 2014. The browser extension promised discounts at online stores by searching for coupons. PayPal acquired Honey in January 2020 for an estimated $4 billion.
GamersNexus has filed a putative class action complaint against PayPal & Honey: https://t.co/YfAZHoCqoY
— GamersNexus (@GamersNexus) January 14, 2025
Multiple reports against Honey surfaced in recent weeks, and influencers spoke out against the browser extension’s alleged scams. Gamers Nexus has decided to sue PayPal and Honey and shared details about the lawsuit in a recent video. Steve Burke said at the start of the new video that:
“It (the lawsuit) has already been filed and we’re seeing PayPal and Honey for three things. One, conversion, two is tortious interference with contractual relations, and three is unfair and deceptive trade practices. We filed this in collaboration with consumer class action firm CPM Legal on behalf of those affected by the actions of what we believe are anti-consumer behaviors that harm not only reviewers but consumers directly.”
He also told his audience that Gamers Nexus would match the settlement amount with Honey and donate it. The proceeds would be donated to consumer rights organizations Public Interest Research Group and Archive.org.
Fellow YouTuber LegalEagle filed a separate lawsuit against Honey in January 2025. Currently, the two lawsuits are separate, but Burke said they might be merged if the case reaches a higher court.
MegaLag’s Findings Against Honey
YouTuber MegaLag posted a 23-minute video detailing how Honey potentially scams its audience. The video gained over 16.5 million views since its release on December 22, 2024. Content creators like Gamers Nexus, Linus Tech Tips, Hasan Piker, Felix “xQc” Lengyel, and Marques Brownlee have covered the issue in detail following Megalag’s coverage.
In MegaLag’s video, he alleged that the browser extension removed affiliate links from content creators and replaced them with Honey links. In some instances, the extension also allegedly showed Honey-affiliated coupons over better options.
During his investigation, MegaLag discovered that YouTuber Linus Tech Tips was aware of the alleged scams and stopped working with them. However, Linus did not reveal Honey’s potential problems, which “disappointed” MegaLag.
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