Phia accused of 'cookie stuffing' in affiliate marketing scheme

Phia, a shopping startup co-founded by Bill Gates' daughter, Phoebe Gates, and Sophia Kianni, has been accused of 'cookie stuffing,' a practice that may have helped the company receive commissions and credit for sales it did not actually generate, according to a Bloomberg investigation. The report has sparked controversy and led to Phia's suspension from Impact.com, a leading affiliate and influencer platform. Other startups have been sued over 'cookie stuffing,' notably Honey, which is owned by PayPal and remains the subject of an ongoing class action lawsuit.

Founded in 2025, Phia has raised more than $40 million in funding and has a star-studded list of investors, including Khloé Kardashian and Hailey Bieber. The startup developed an app and browser extension that works like Google Flights, but for shopping. Phia helps customers find the lowest-priced items across various retailers as well as discount codes to use when shopping.

The company takes a commission on purchases made through the platform, an industry practice known as affiliate marketing. The Bloomberg investigation, as well as findings from an independent consultant and a competitor, found that if a user shopped at an online retailer - even if they arrived at the site on their own or through another affiliate program like Wirecutter - Phia would open a new tab in the background. During the checkout process, Phia would override the referral codes from other affiliates and instead inject its own, allowing it to take credit for and potentially receive a commission on a purchase it didn't earn.

Once the issue was flagged to Phia, a spokesperson told Bloomberg that all necessary changes had been made to fix the issue. A check by Bloomberg found the issue had been resolved. It's unclear if the fix is enough to satisfy the retailers and affiliate partners that work with Phia.

TechCrunch reached out to Phia for comment and has not received a response. The allegations against Phia raise concerns about the integrity of affiliate marketing practices and the potential for exploitation. If Phia's actions were indeed deceptive, it could have unfairly deprived other affiliates of rightful commissions and damaged trust within the industry.

As the company moves forward, it will need to demonstrate a commitment to transparent and fair business practices to regain the trust of its partners and customers. The incident also highlights the need for greater oversight and regulation in the affiliate marketing space to prevent similar abuses from occurring in the future.