Google Is Updating Its Chrome Extension Polices After Honey Scandal

Google does not want a repeat of the Honey Chrome extension scandal. To prevent that from happening again, the company is tightening its Chrome extension affiliate ad policies and making some changes. Google hopes to prevent another Honey browser affiliate disclosure scandal by updating its extension policies.

Better browser extension affiliate disclosures

With the updated rules, Google hopes to introduce more transparency and accountability in the extension marketplace, ensuring that browser-based affiliate disclosures are clear and fair.

According to Google’s new policy, “Affiliate links, codes, or cookies must only be included when the extension provides a direct and transparent user benefit related to the extension’s core functionality. It is not permitted to inject affiliate links without related user action and without providing a tangible benefit to users.”

Google also calls out specific violations, such as “Inserting affiliate links when no discount, cashback, or donation is provided” and “An extension that continuously injects affiliate links in the background without related user action.”

While this update is a step in the right direction, the bigger question is whether Google can spot these violations quickly. Google does have a review process for extensions submitted to the Chrome Web Store. However, more often than not, bad actors have found ways to slip through. Stronger policies will better protect users and creators from exploitative affiliate schemes.

The Honey browser extension scandal

PayPal created Honey as a Chrome browser extension that helps users find the best deals. Sounds good, right? However, an investigation by YouTuber MegaLab found that the extension was replacing affiliate links from content creators with its own. So, instead of creators getting commissions, those commissions ended up going into PayPal’s wallet. The Honey browser extension basically replaced affiliate links without proper disclosure, prompting Google to take action.

Meanwhile, Honey is facing a class-action lawsuit over its practices. The lawsuit accuses the company of deceptive business practices. However, PayPal is defending itself. Josh Criscoe, PayPal’s VP of corporate communications, issued a statement disputing the allegations. He also argues that PayPal is following “industry rules and practices.”

“We dispute the allegations in the lawsuits, and will defend against them vigorously.” He also says that the extension is  “free to use and provides millions of shoppers with additional savings on their purchases whenever possible,” and “helps merchants reduce cart abandonment and comparison shopping while increasing sales conversion,” and that it “follows industry rules and practices, including last-click attribution, which is widely used across major brands.”