Honey Extension Under Fire: Data Collection and Business Harm in North East India

The popular PayPal-owned browser extension Honey has been under scrutiny for its questionable practices over the past year, with allegations of data collection, shady business tactics, and harming small businesses. As millions of users have abandoned the extension, a new investigation reveals more disturbing details.

Sketchy Data Collection Practices

According to a recent investigation, Honey has been collecting extensive personal data from its users, including shopping habits, location data, and timestamps of pages visited. This information is linked to specific user IDs, allowing Honey to track users' browsing activities, not just their shopping behavior.

The investigation found that Honey's data collection goes beyond shopping data, encompassing general browsing data as well. This raises concerns about privacy and the potential misuse of personal data.

It is worth noting that these practices were exposed in 2020, before the controversy surrounding Honey escalated. The investigation was published just after PayPal's $4 billion acquisition of the company.

Impact on Small Businesses

The investigation also revealed that Honey has been scraping and sharing private coupon codes meant for specific businesses. Some businesses reported that Honey refused to remove these codes unless they entered into a partnership with the extension.

These actions have raised concerns about Honey's impact on small businesses in the North East region and across India. By sharing private codes without permission, Honey undermines the efforts of businesses to attract and retain customers through exclusive promotions.

Declining User Base

Despite the controversy, Honey continues to lose users. As of December 2025, the extension has dropped to 13 million users on Chrome, down over 8 million users since its peak in 2024.

The decline in user base is a significant blow to Honey, particularly given its acquisition by PayPal. The extension's questionable practices have led to multiple lawsuits, although these have since been dismissed in court.

Implications for North East India

The controversy surrounding Honey has broader implications for the North East region and India as a whole. The extension's shady practices highlight the importance of transparency and user privacy in the digital age.

Moreover, the impact on small businesses underscores the need for responsible behavior from tech companies. By undermining the efforts of businesses to attract and retain customers, Honey's actions could have a ripple effect on the local economy.

Looking Forward

As the investigation into Honey continues, it is crucial for users to be vigilant about their online privacy and the companies they trust with their data. For businesses in the North East region and beyond, the Honey controversy serves as a reminder to prioritize transparency and ethical business practices.