Phia accused of cookie stuffing for unearned affiliate credit
▼ Summary
– Phia, a shopping startup co-founded by Bill Gates’ daughter Phoebe Gates and Sophia Kianni, has been accused of “cookie stuffing” to claim unearned commissions.
– The controversy led to Phia’s suspension from Impact.com, an affiliate platform, while similar practices have resulted in lawsuits against other startups like Honey.
– Founded in 2025, Phia has raised over $40 million from investors including Khloé Kardashian and Hailey Bieber, operating as a browser extension that finds lowest prices and discount codes.
– Bloomberg’s investigation found Phia would open a background tab during checkout to override other affiliate referral codes, taking credit for sales it didn’t generate.
– After being flagged, Phia stated it fixed the issue, and Bloomberg confirmed the fix, but it remains unclear if this satisfies retailers and affiliate partners.
Phia, a shopping startup co-founded by Phoebe Gates, daughter of Bill Gates, and environmental activist Sophia Kianni, has come under fire following allegations of cookie stuffing, a controversial technique that may have allowed the company to claim unearned affiliate commissions on sales it did not drive. The accusations stem from a Bloomberg investigation, which has since led to the startup’s suspension from Impact.com, a major affiliate and influencer marketing platform.
The practice of cookie stuffing is not new to the tech world. It has previously landed other startups in legal trouble, including PayPal-owned Honey, which is currently facing an ongoing class action lawsuit over similar claims.
Launched in 2025, Phia has raised over $40 million in funding, backed by a high-profile roster of investors that includes Khloé Kardashian and Hailey Bieber. The startup operates as a browser extension, functioning similarly to Google Flights but tailored for shopping. It helps users find the lowest prices and discount codes across multiple retailers, earning a commission on each purchase through standard affiliate marketing arrangements.
However, according to Bloomberg’s investigation, as well as findings from an independent consultant and a competitor, Phia’s extension was reportedly opening a new browser tab in the background whenever a user visited an online retailer, even if they arrived there directly or through another affiliate program like Wirecutter. During checkout, the extension would then override the existing referral codes and inject its own, effectively hijacking the credit and potential commission for a sale it did not generate.
When confronted with the findings, a Phia spokesperson told Bloomberg that the company had implemented all necessary fixes to address the issue. A subsequent check by Bloomberg confirmed the problem had been resolved. Whether this correction will satisfy the retailers and affiliate partners working with Phia remains unclear.
TechCrunch has reached out to Phia for additional comment but has not yet received a response.
This article has been updated to clarify the names of the celebrity investors involved.
(Source: TechCrunch)