Phia accused of ‘cookie stuffing,’ taking affiliate credit on purchases it didn’t earn

Phia, a shopping startup co-founded by Phoebe Gates, the daughter of Bill Gates, and Sophia Kianni, is under fire for allegedly engaging in a controversial tactic known as 'cookie stuffing.' This practice reportedly allowed the company to claim commissions on sales it did not actually facilitate, as highlighted by a recent investigation by Bloomberg. The revelations have resulted in Phia's suspension from Impact.com, a prominent platform for affiliates and influencers. This situation is reminiscent of past legal troubles faced by other companies, such as Honey, which is owned by PayPal and is currently embroiled in a class-action lawsuit over similar allegations. Established in 2025, Phia has attracted over $40 million in funding and boasts a high-profile roster of investors, including celebrities like Kim Kardashian and Hailey Bieber. The startup has developed an innovative app that functions much like Google Flights, but for shopping. Phia aims to assist users in finding the best prices across various retailers while also providing discount codes to enhance their shopping experience. Under the affiliate marketing model, Phia earns commissions on purchases made through its platform. However, the Bloomberg investigation, supported by an independent consultant and a competitor, uncovered that Phia's system would open a new tab in the background when users visited an online retailer. This action would allow Phia to replace any existing referral codes from other affiliates with its own, thereby claiming credit for transactions it did not generate. After being alerted to these practices, a spokesperson for Phia informed Bloomberg that corrective measures had been implemented to address the concerns raised. However, it remains uncertain whether these changes will be sufficient to alleviate the worries of the retailers and affiliate partners associated with Phia. TechCrunch has reached out to the company for further comments but has yet to receive a response.