Honey drops to 14 million Chrome users amid ongoing affiliate scandal

PayPal's Honey browser extension has lost another million Chrome users, dropping to 14 million as of July 2025, according to Chrome Web Store data. The continuous decline follows a December 2024 investigation that exposed systematic affiliate commission diversion practices affecting content creators and consumers.

The latest user count represents a significant decrease from Honey's peak of over 20 million Chrome users before the December 22, 2024 investigation by tech journalist MegaLag. The extension now sits well below the "17+ million members" claim displayed on its Chrome Web Store listing, though PayPal maintains this figure may include users across other browsers including Microsoft Edge, Safari, and Firefox.

Summary

Who: PayPal's Honey browser extension, content creators, affiliate marketers, and consumers using the extension for coupon discovery.

What: Honey has lost another million Chrome users, dropping to 14 million as of July 2025, following revelations about systematic affiliate commission diversion practices and limited coupon code access.

When: The decline began after a December 22, 2024 investigation, with the latest milestone reached in July 2025, representing a total loss of over 6 million users from the extension's peak.

Where: The user decline is measured specifically on Google Chrome, though Honey remains available across multiple browsers including Firefox, Safari, and Microsoft Edge.

Why: Users are departing following investigations that revealed Honey diverted affiliate commissions from content creators, manipulated which coupon codes were shown to users, and misrepresented its core functionality, leading to legal action and regulatory scrutiny.

According to the original investigation released on December 22, 2024, Honey systematically replaced content creators' affiliate tracking cookies with PayPal's own affiliate codes during checkout processes. This practice occurred even when the extension provided no discount codes to users. The investigation revealed three distinct commission diversion mechanisms: direct replacement of affiliate tracking cookies, incentivized diversion through the "Honey Gold" rewards program, and commission capture through interface elements.

Data analysis from the investigation showed Honey sponsored approximately 5,000 videos across 1,000 YouTube channels, accumulating 7.8 billion views. PayPal acquired Honey for $4 billion prior to these practices coming to light. The investigation documented that when users clicked on content creators' affiliate links and subsequently activated Honey at checkout, the extension would remove the creators' tracking cookies and substitute PayPal's affiliate code.

Princess Polly, an Australian clothing retailer, disclosed in a company podcast that partner merchants retained control over which coupon codes appeared through the Honey platform. This arrangement meant users would only see merchant-approved codes through the extension, even if more valuable discount codes existed elsewhere. The investigation documented one test case where Honey diverted a $35 commission on a NordVPN purchase while providing the user with only 89 cents worth of "Honey Gold" rewards points.

The Better Business Bureau had previously launched an inquiry into Honey's advertising claims. According to the investigation, Honey discontinued certain claims for "business reasons" when questioned by the BBB. Matt Mullenweg, founder of WordPress, characterized the findings as "particularly egregious behavior" by PayPal in social media commentary following the investigation's release.

Google implemented restrictions on extensions following the controversy, which led to Honey making changes to some of its practices. However, the user decline has continued despite these modifications. The extension dropped from 15 million users in May 2025 to the current 14 million, representing an accelerating rate of departures compared to earlier months.

Legal consequences emerged when content creators Wendover Productions LLC and Businessing LLC filed a class action lawsuit on December 29, 2024, in the United States District Court for the Northern District of California. The complaint seeks damages exceeding $5 million and alleges systematic affiliate commission diversion through cookie manipulation. According to court documents, the lawsuit claims Honey's browser extension replaces content creators' affiliate tracking cookies with its own at checkout, redirecting commissions even when providing no discount codes.

The technical analysis in the lawsuit explains that affiliate marketing operates on a "last click attribution" model, which credits the final touchpoint before purchase. The plaintiffs argue that Honey exploits this system by inserting itself as the last touchpoint during checkout, effectively erasing previous affiliate referrals. The lawsuit documents allege that the extension executed commission diversion through concealed browser tabs that simulated new referral clicks.

When Linus Media Group (LMG), one of Honey's largest promotional partners, discovered these practices and requested changes, Honey declined to modify the behavior according to email communications reviewed in the investigation. LMG subsequently terminated their partnership with Honey after approximately 160 sponsored segments that garnered 194 million views. Multiple e-commerce security experts cited in the investigation noted that the practices raised concerns about transparency in affiliate marketing systems.

The investigation's documentation included technical analysis of cookie manipulation, merchant communications, and extensive data on promotional reach. According to the materials, many content creators remained unaware of the commission diversion until the investigation's publication. The findings have prompted discussions about oversight of browser extensions that interact with e-commerce systems.

Mozilla shows around 460,000 Honey users on Firefox, while Apple doesn't display user figures for Safari. Microsoft Edge reports 5,000,000 Honey users, though this number may be inflated by Microsoft's practice of copying Chrome extensions when installed on the same machine. The combined user base across all browsers suggests PayPal's "17+ million members" claim may still be technically accurate, but the buffer is shrinking rapidly.

Browser extension practices have faced increased scrutiny in recent months. Chrome's transition to Manifest V3 forced removal of popular ad blocker uBlock Origin, affecting over 31 million users who relied on privacy-focused extensions. The uBlock Origin removal sparked discussions about browser extension policies and their impact on user choice, particularly regarding privacy tools that conflict with advertising-based business models.

For the digital marketing community, the Honey controversy highlights vulnerabilities in affiliate marketing attribution systems. The "last click attribution" model that enables Honey's practices remains standard across most e-commerce platforms, creating potential for similar commission diversion schemes. Marketing professionals must now consider browser extension interference when evaluating affiliate campaign performance and attribution accuracy.

The investigation revealed that Honey's promotional reach extended far beyond typical advertising campaigns. Data showed sponsorship of content viewed by billions of users, raising questions about disclosure practices and the relationship between promotional platforms and content creators. The scope of Honey's influence underscores the importance of transparency in affiliate marketing relationships.

Commission diversion affects not only individual content creators but also the broader digital marketing ecosystem. When affiliate tracking is compromised, marketing attribution becomes unreliable, making it difficult for businesses to measure campaign effectiveness and optimize spending. The Honey case demonstrates how browser extensions with significant user bases can disrupt established attribution models.

The ongoing user decline suggests that consumer awareness of these practices is influencing behavior. Despite Honey's continued functionality as a coupon-finding tool, users appear to be responding to revelations about commission diversion and limited coupon access. The sustained exodus indicates that transparency and trust remain critical factors in browser extension adoption.

Google's implementation of restrictions on affiliate-related extensions represents a broader effort to address deceptive practices in the Chrome ecosystem. However, the technical complexity of affiliate tracking systems makes comprehensive oversight challenging. The Honey case illustrates the need for clearer guidelines about browser extension behavior and disclosure requirements.

Market analysis suggests that browser extension users are becoming more discerning about privacy and ethical practices. The correlation between the MegaLag investigation and subsequent user departures indicates that detailed technical explanations can influence consumer behavior, even for complex topics like cookie manipulation and affiliate attribution.

PayPal has not publicly addressed the specific allegations or the ongoing user decline. The company's acquisition of Honey for $4 billion positioned the extension as a strategic asset for PayPal's broader e-commerce initiatives. However, the reputational impact of the affiliate diversion controversy may affect the extension's long-term viability and integration with PayPal's other services.

Industry observers note that the Honey controversy may prompt stricter oversight of browser extensions that interact with e-commerce systems. Regulatory attention to digital platform practices has increased globally, with particular focus on transparency and fair competition. The systematic nature of Honey's alleged practices could attract regulatory scrutiny beyond the current civil litigation.

The case underscores the importance of technical due diligence in affiliate marketing partnerships. Content creators and marketing professionals must understand how browser extensions and other intermediaries can affect attribution and commission structures. The Honey investigation provides a detailed examination of how seemingly beneficial tools can actually undermine the interests of their users and partners.

Timeline

• December 22, 2024: MegaLag investigation exposes Honey's affiliate commission diversion practices
• December 25, 2024: PPC Land reports on investigation findings
• December 29, 2024: Class action lawsuit filed against PayPal seeking $5+ million in damages
• January 2025: Honey loses approximately 3 million Chrome users following investigation
• March 2025: Extension drops to 16 million Chrome users
• May 23, 2025: User count decreases to 15 million Chrome users
• July 7, 2025: Honey falls to 14 million Chrome users, continuing downward trends