Phia, the shopping startup co-founded by Phoebe Gates (daughter of Bill Gates) and Sophia Kianni, has been accused of a practice known as “cookie stuffing,” potentially enabling it to collect commissions on sales it did not generate, according to a Bloomberg investigation published Thursday. The report has led to Phia’s suspension from Impact.com, a leading affiliate and influencer marketing platform.
How the Alleged Scheme Worked
The Bloomberg investigation, supplemented by findings from an independent consultant and a competitor, detailed how Phia’s browser extension operated. If a user visited an online retailer—even if they arrived via their own search or through another affiliate program like Wirecutter—Phia would open a new tab in the background. During the checkout process, the extension would override the referral codes from other affiliates and inject its own. This allowed Phia to take credit for and potentially receive a commission on a purchase it did not earn.
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The practice, known as “cookie stuffing,” is considered a form of affiliate marketing fraud. Other startups have faced legal action over similar tactics, most notably PayPal-owned Honey, which is currently the subject of an ongoing class-action lawsuit.
Phia’s Response and Current Status
Once the issue was flagged by Bloomberg, a spokesperson for Phia stated that all necessary changes had been made to fix the issue. A subsequent check by Bloomberg found the issue had been resolved. However, it remains unclear whether the fix is sufficient to satisfy retailers and affiliate partners that work with Phia. The company has been suspended from Impact.com, a major platform that connects brands with affiliates and influencers. TechCrunch reached out to Phia for comment but has not received a response.
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Background on Phia and Its Investors
Founded in 2025, Phia has raised more than $40 million in funding and boasts a star-studded list of investors, including Kim Kardashian and Hailey Bieber. The startup developed a browser extension app that functions similarly to Google Flights, but for shopping. It helps customers find the lowest-priced items across various retailers and discover discount codes. The company generates revenue by taking a commission on purchases made through its platform, an industry practice known as affiliate marketing.
The allegations, if proven, could damage the trust Phia has built with both users and retail partners. The incident also highlights the ongoing challenges within the affiliate marketing industry, where deceptive practices can undermine the integrity of the entire ecosystem.
Frequently Asked Questions
What is ‘cookie stuffing’?
Cookie stuffing is a deceptive practice where a website or browser extension places an affiliate tracking cookie on a user’s device without their knowledge, often overriding existing cookies, to fraudulently claim credit for a sale.
How did Phia allegedly commit cookie stuffing?
According to a Bloomberg investigation, Phia’s browser extension would open a new tab in the background when a user visited a retailer, and during checkout, it would replace the retailer’s existing affiliate referral code with its own, allowing it to claim a commission on the purchase.
What are the consequences for Phia?
Phia has been suspended from Impact.com, a major affiliate marketing platform. The company has stated it fixed the issue, but the incident has sparked controversy and could lead to legal challenges, similar to the ongoing class-action lawsuit against PayPal’s Honey.
