Honey Controversy Sees Major Development As Popular YouTuber Files Lawsuit Against Company

Popular law YouTuber, LegalEagle has filed a lawsuit against PayPal-owned Honey over alleged affiliate link manipulation.

LegalEagle in his latest video and Honey logo
LegalEagle is filing a lawsuit against Honey (Image via @LegalEagle/YouTube and @Honey/X)

Popular YouTuber and lawyer, Devin “LegalEagle” Stone, has filed a class action lawsuit against Honey over link manipulation and fraud. For context, on December 22, 2024, Jonathan “MegaLag” released a video accusing Honey, a coupon code extension owned by PayPal, of fraud. In the video exposing the scam, MegaLag shared a detailed explanation of how the browser extension sneakily removed the creator’s affiliate link and placed its own instead. This led to the loss of revenue for the affiliated creators, and the money was diverted towards the PayPal-owned platform.

In his video titled ‘I’m Suing Honey,’ LegalEagle has urged creators affected by Honey to reach out to the YouTuber’s law firm. LegalEagle, in his video, went over the process through which Honey allegedly stole billions of dollars. He also credited MegaLag for his investigative journalism that helped shed light on the malicious practices. LegalEagle has urged YouTubers affected by the scam to provide information on his website. In the video, he stated that the extension is essentially stealing money from the creators.

“It’s free money they say. But we believe that nothing could be further from the truth. Unfortunately, there’s no such thing as a free lunch. We believe that money came right out of the pockets of your favorite YouTubers, TikTokers, Instagrammers, podcasts, and bloggers.”

Honey had over 20 million users before MegaLag’s video was published. As of this writing, however, the extension has lost over 3 million users and now has 17 million users. LegalEagle mentions that PayPal’s coupon code extension exploits and unfairly takes advantage of the “last click attribution.” The official lawsuit mentions:

“Defendant takes advantage of last click attribution by inserting a Honey pop-up at checkout for each customer that has installed the Honey browser. If the customer clicks on the Honey link after clicking on Plaintiff’s affiliate link, then Defendant’s affiliate cookie replaces Plaintiff’s.”

Community Reactions to the Honey Lawsuit

After LegalEagle’s video went live, some users reacted to the lawsuit and shared their opinions on Reddit. Some shared skepticism about the lawsuit, while others urged their favorite creators to join forces with LegalEagle.

Comments on the Reddit post stated:

“Does Honey has a discount code they can use for their defence?” stated Alex09464367.

“Having a lawyer be a popular YouTuber is honestly such a great thing,” wrote dkyguy1995.

“Look, I love LegalEagle and the content the channel puts out. But let’s be real here. Every time he’s said he’s suing for whatever reason, it’s gone completely nowhere. I want him to win, but I’m not going to hold my breath in anticipation of it, judging by the previous track record of these declarations,” commented @speedly.

Creators affected by Honey are yet to comment on the lawsuit by LegalEagle. The YouTube video has over 2.7 million views, over 200,000 likes, and over 12,000 comments as of this writing.


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