Should You Trust Online Shopping Apps Like Honey?
When PayPal announced last month that it would acquire Honey, a browser extension and app to help you find coupon codes and deals when shopping online, I took my spirits. I was interested not in the news of the acquisition, but in the fact that PayPal would pay $ 4 billion for the company, mostly in cash. What PayPal May Want from Honey’s 17 Million Users ?
But the answer is obvious: data. The reality of every program you use that finds you deals, discounts, coupons or money backs is that the service needs to collect information about your shopping habits in order to find those deals and discounts for you.
But is it worth exchanging personal data on shopping habits for a coupon code? Unfortunately, it is not easy to give an unequivocal answer across the board. It depends on the service, what data they collect and how they share it – and by share, I mean the sale.
How Internet Shopping Browser Extensions Make Money
Trading extensions and apps have two main methods of generating income, so they can provide their services to you for free. They probably do both of the following:
First, they charge stores a fee to participate. If the Rakuten money back program returns you 5%, for example, when you make purchases at a particular online store, you can be sure that that store gives Rakuten a commission of more than 5%. You just get a fraction of the larger stake. Stores participate because they want to attract new and returning customers. It can take months or even years for a brand to turn you into a returning customer. But once you get hooked, you are more likely to come back to that brand , even if there is no sale.
Second, they use your shopping data to help retailers understand your shopping habits. Honey, for example, has always been open about how he does it. Honey states that it does not sell your personal information, but only collects data about your purchases in order to communicate its primary purpose: to find coupons for Honey users. But it also explains that it exchanges information about user activity “in an aggregated or anonymous format that does not identify any particular person.”
It might be on a dataset of how people buy toothpaste online for a report requested by participating dental companies. Maybe this is a report on trends in the way people of a certain age shop online. These are hypotheses, but they give you an idea of how these apps can accommodate your personal habits, combine them with others, and provide analysis of trends and shopping habits that can inform the larger industry (for price).
“The Internet today is not about your privacy,” said Max Eddy, software analyst and security expert at PCMag . “Every site, every application, every service is looking at something, and you don’t always know what and why.” You might not mind that the website or app knows you bought a pair of shoes, Eddie said, but if you knew what other information was being collected, such as your name, address, or favorite color, you might feel like your confidentiality has been violated. violated.
Why it’s hard to figure out which apps to trust
Each browser extension and app plays by its own rules, which can make it difficult to determine what information you’re sharing to get a discount. Tristan Reiner writes for Android Authority that, in general, apps collect more of your data than browser extensions, and some of them contain alarmingly broad definitions of who qualifies as a “partner” who views your data and what services or advertises they are. can provide you. Rainer notes that Ibotta’s money-back app is one particularly offensive option.
Refund shopping portals and their accompanying apps tend to be more invasive, but that’s because they give you more rewards. Coupon extensions don’t take up a lot of your data, but they can be missed or missed, notes Kevin Brasler, executive editor of Consumers’ Checkbook , a nonprofit consumer advocacy group. Refund apps are more reliable in getting the discount you want, but are often more opaque about how your data is used.
Unless you delve into the smallest details of each program’s privacy policy, there is no easy way to know how much of your information the app collects or how much it sells. The same goes for all existing credit cards and store loyalty programs. Yes, companies want you to buy dollars. But they also want to know how you spend your money.
“As far as I can tell, your privacy no longer exists,” Brasler said. “If there is something you want to buy and don’t want anyone to know about it, do not buy through any refund portal. In fact, go to a regular store and use the cash. “
How to use browser extensions for shopping wisely
Maybe you’re okay with an app that sees the contents of your latest grocery receipt. It might be worth trading some of your information for a discount. Anyway, what is privacy in 2019? If you give up secrets, that’s okay. But don’t be lazy because it could cost you your data and your money.
“All of these different [services] are essentially cost traps,” Brasler said. “They are designed to make you spend more. Retailers won’t pay commissions unless they find it helps them in some way. ”
Therefore, before you decide that the store with the highest money-back offer is offering the best prices, do additional research on the product you are planning to buy. Have you seen a coupon for a branded product? The store brand may be cheaper even after this discount. Browser extensions and apps that find deals and discounts for you can be helpful, but you should still strive not to relax if you’re shopping on a budget.