Tag: PayPal

  • GamersNexus Sues PayPal and Honey Over MegaLag Claims

    GamersNexus Sues PayPal and Honey Over MegaLag Claims

    GamersNexus typically focuses on graphics cards and PC cases, but recently, they have shifted their investigative efforts towards the widely-used browser extension, Honey, which is owned by PayPal. They align with MegaLag regarding accusations of Honey’s misconduct.

    Allegations Against Honey

    The allegations involve the misuse of online referral or affiliate links, potentially leading to revenue loss for influencers who deserve credit for the sales. GamersNexus has responded by filing a class action lawsuit against PayPal in the Northern District of California.

    Legal Actions Taken

    This new lawsuit is distinct from another case brought against Honey by YouTuber LegalEagle, also known as Devin Stone, who is a lawyer. Both lawsuits share the same goal: to seek compensation for those negatively impacted by the actions of the browser extension.

    Seeking Class Members

    The class action is being pursued in collaboration with the legal group CPM, which is currently looking for potential class members. Content creators who think they have been negatively impacted by Honey’s practices, as described in the lawsuit, are encouraged to apply.

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  • YouTuber Exposes Honey’s Deceptive Affiliate Practices

    YouTuber Exposes Honey’s Deceptive Affiliate Practices

    YouTuber MegaLag has uncovered serious issues with Honey, a well-known browser extension backed by big names like Linus Tech Tips, MKBHD, and MrBeast, and owned by PayPal. Honey claims to help users find the best coupon codes online, but evidence suggests this might not be entirely true. Some partner stores can direct Honey to display only certain discount codes.

    The Problem with Discount Codes

    In an example provided by MegaLag, if a retailer has a discount code that offers a 30% reduction on a specific item alongside another code that provides just 5%, Honey will only show the less advantageous code. This goes against Honey’s promise of helping users save money. Worse still, Honey appears to undermine the very creators who endorse it.

    How Honey Affects Creators

    Many users may have noticed that Honey typically activates right before the checkout process. While searching for discount codes, Honey replaces any affiliate cookies with its own. This action effectively robs the creators you support of their affiliate earnings, even if you don’t finalize the purchase right away.

    Watch the Full Video

    The video dives deeper into how this whole operation unfolds, and we suggest watching it in its entirety. It’s the first part of a three-part series, and MegaLag has stated he will expose more inconsistencies with the service in future videos.

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  • PayPal to Share User Data with Third Parties Next Summer

    PayPal to Share User Data with Third Parties Next Summer

    While the seemingly negative news today may appear shocking at first glance, it’s important for readers to remember that PayPal has over seven months to rectify the situation. Currently, the issue revolves around the automatic sharing of data with external parties, as the well-known digital payment platform has introduced a "Personalized shopping" option and opted to activate data sharing by default, rather than leaving it unchecked.

    Understanding the New Setting

    The new setting described above is clearly highlighted with the statement, "Let us share products, offers, and rewards you might like with participating stores." It also notes that PayPal aims to create "more personal experiences" for users "starting early summer 2025." Additionally, users are informed that they can choose to opt in or out "at any time by adjusting this setting," which begs the fundamental question: Why not have this setting turned off by default?

    Managing Data Sharing

    At present, users can easily navigate to Settings > Data & Privacy > Manage shared info > Personalized shopping to disable the data sharing for personalized shopping experiences. However, a significant issue still exists. According to PayPal’s Privacy Policy, any information shared with third parties that is deemed necessary for completing transactions can be used according to those third parties’ privacy policies, regardless of the settings users have chosen in their PayPal accounts.

    The Privacy Concern

    Ultimately, it seems that no matter what unfolds with the personalized experience offered by the digital payment service, users who are concerned about their data privacy must also review the privacy policies of the third parties they decide to transact with through PayPal.

    For those interested in learning more about PayPal’s background, they can currently find "The Founders: The Story of Paypal and the Entrepreneurs Who Shaped Silicon Valley" available in four formats (audiobook, Kindle, hardcover, and paperback), starting at just $0.99 for the audiobook with membership.

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