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Phia accused of ‘cookie stuffing,’ taking affiliate credit on purchases it didn’t earn
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Phia, the shopping startup co-founded by Bill Gates' daughter, Phoebe Gates, and Sophia Kianni, has been accused of engaging in 'cookie stuffing,' a deceptive practice that may have allowed it to claim affiliate commissions on purchases it did not generate. The allegations, detailed in a Bloomberg investigation, have led to Phia's suspension from Impact.com, a major affiliate marketing platform. The controversy highlights ongoing concerns about fairness in the affiliate marketing industry, which relies on proper attribution of sales to referring partners.
Founded in 2025, Phia developed a browser extension that helps users find the lowest prices and discount codes across retailers, similar to a shopping version of Google Flights. The startup has raised over $40 million from high-profile investors, including Khloé Kardashian and Hailey Bieber. Phia's business model depends on affiliate marketing, where it earns commissions when users make purchases through its platform.
According to Bloomberg, as well as findings from an independent consultant and a competitor, Phia's extension would open a new tab in the background when a user shopped at an online retailer, even if the user arrived via another affiliate link, such as from Wirecutter. During checkout, Phia would override existing referral codes and inject its own, effectively stealing credit for sales it did not facilitate. This practice, known as cookie stuffing, can harm other affiliates and erode trust in the system.
The implications are significant: if the allegations hold, Phia may have improperly collected commissions from retailers, potentially violating terms of service and industry standards. Competitors like Honey, owned by PayPal, have faced similar lawsuits over cookie stuffing, resulting in a continuing class action. The practice undermines the integrity of affiliate marketing, which relies on honest attribution to sustain partnerships.
In response to the investigation, a Phia spokesperson told Bloomberg that necessary changes had been made to fix the issue, and a subsequent check by Bloomberg confirmed the problem was resolved. However, it remains unclear whether the fix satisfies retailers and affiliate partners, and Phia has not responded to TechCrunch's request for comment. The suspension from Impact.com suggests that the platform is taking the allegations seriously.
Looking ahead, Phia faces potential legal and reputational risks, as well as possible loss of partnerships. The incident may prompt stricter oversight of affiliate marketing practices, especially among startups with heavy investor backing. As the e-commerce landscape continues to evolve, transparency in how affiliates claim credit will be crucial for maintaining consumer and retailer trust. Phia's future will depend on whether it can rebuild credibility and demonstrate compliance with industry standards.
