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Can someone ELI5 what honey was actually doing?
Using browser exploits to steal commissions from affiliate links without even the user knowing. Let’s say you follow an affiliate link to a product and you go to checkout. When Honey pops up and tells you either that it found you a discount (or even if it pops up to tell you it didn’t find you anything) it secretly opens a new tab to the page which replaces the cookie in the browser that contains the code that identifies who to give the commission to. Instead of the person who gave you the link getting their commission, Honey gets it instead.
Then if you used PayPal checkout, they would also “find” you discounts but swap them out with lower ones and pocket the difference. For example you buy something for $10 and they find a 30% off coupon, but tell you it’s a 10% off coupon. You go to checkout with PayPal and they charge your card $9 but only pay the merchant $7 and pocket the other $2.
Everyone else is only talking about the scummy affiliate revenue stealing, but that's been public info for a while.
The more alarming stuff is that they partner with businesses to manage the coupon codes shown on Honey. If a business doesn't want consumers to have discounts below a certain percentage, they can remove those coupons from Honey. This means that Honey no longer does the thing that it's advertised to do, and they're getting paid affiliate revenue after lying to consumers.
That was my assumption all along IMO. Any time a coupon company gets big, it'll end up becoming an advertising platform, because there's a lot more money in that than saving people money, especially if you make people think they're saving money.
That's why I don't use Honey or any other coupon service, unless I'm actually about to buy something specific and looking for a discount (e.g. I'm happy with the price, but I'd be happier with a 10% discount).
They'd replace affiliate link cookies with their own. So if you're watching a makeup tutorial and you use their referral code but then use Honey to look for deals, Honey takes the commission instead of the person actually doing the work.
It's like if the finance person at a car lot decided to take everyone's commissions because they touched the paperwork last.
Lying and stealing
Who did they steal from? How did they steal? I never used them but didn’t they provide coupon codes or smth?
They stole referrals. I'll explain like you're 10, it's a bit much for a 5 year old.
Let's say you watch a video with a link to a product in the description. Normally, when you click that link, a referral code is embedded so the person who made the video gets a referral fee when you make a purchase.
Honey would remove those referral codes and replace it with their own.
like you’re 10
Then uses embedded and referral. Not sure I know many ten year olds that would get those meanings. 😊
I'm sorry that you have so little faith in the 10 year olds you know.
Does your comment have a constructive point or are you simply the sort that looks for technicalities to correct so they might feel smugly satisfied about themselves?