PayPal, the global online payment processing giant, is facing a fresh wave of legal challenges related to its Honey browser extension. While the company continues to grapple with multiple class actions from content creators alleging commission theft, it now confronts new complaints from consumers who claim they were misled about Honey’s discount-finding capabilities.
The Honey Controversy Expands
Honey, acquired by PayPal in 2020 for $4 billion, markets itself as a tool that scours the internet for the “best” discount codes, automatically applying them at checkout on partnered e-commerce websites. However, recent legal filings suggest this claim may be inaccurate.
Two new class actions have been filed against PayPal and Honey:
- A pending consumer class action in California’s Santa Clara County Superior Court, filed by the Law Offices of David J. Gallo on behalf of UK residents who used Honey after January 1, 2020.
- Aylstock, Witkin, Kreis, and Overholtz filed a similar class action in the U.S. District Court for the Northern District of Florida.
Key Allegations
Both lawsuits allege that Honey and PayPal:
- Used superlatives like “best discount codes” and “the biggest savings” to create a false impression about Honey’s capabilities.
- Prioritized codes from partner merchants over potentially better deals available in the market.
- Misled consumers about the platform’s practices, including alleged “abusive practices” against influencers.