PayPal's Honey, a Chrome extension designed to find coupons for online shoppers, came under scrutiny after a viral YouTube video exposed its unethical affiliate marketing tactics. Many users were unaware that Honey not only inserted its affiliate links without revealing active coupon codes but also replaced existing affiliate links from content creators, undermining creators' revenue. The video's success, with over 17 million views, led to lawsuits from prominent YouTubers and prompted Google to update its Chrome extension policies to regulate affiliate link use more strictly, requiring clear consumer benefits for their inclusion.
Honey's tactics resulted in Google rolling out brand new affiliate ads policies for Chrome extensions. These policies ensure affiliate links are only included when the extension provides a clear consumer benefit.
The 23-minute video by YouTube creator MegaLag received more than 17 million views and prompted lawsuits against PayPal from YouTubers like Legal Eagle and GamersNexus.
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