Phia, the shopping startup founded by Bill Gates’ daughter Phoebe Gates and Sophia Kianni, has been accused of a practice known as “cookie stuffing,” which could help a product receive commissions and credits for sales it didn’t actually get. According to Bloomberg research.
The report sparked controversy and led to Phia’s suspension Impact.comleading affiliate and influencer platform. Other startups have been sued over “cookie stuffing,” most notably Honey, which is owned by PayPal and is the subject of an ongoing class action lawsuit.
Created in 2025, Phia It has collected more than 40 million dollars funding and has a star-studded list of investors, including Khloé Kardashian and Hailey Bieber. The startup has developed an app that works a bit like Google Flights, but as a browser extension for shopping. Phia helps customers find the lowest priced products across various retailers as well as discount codes to use when shopping. The company receives a commission for purchases made through an industry-proven platform known as affiliate marketing.
Bloomberg research, as well as independent consultant and competitor findings, found that if a user makes a purchase from an online retailer, whether they came to the site alone or through another affiliate program like Wirecutter, Phia will open a new tab in the background. During the verification process, Phia would cancel the referral codes from other affiliates and enter her own code instead, allowing her to receive credit and potentially a commission for a purchase she didn’t earn.
After the problem was reported to Phia, a spokesperson told Bloomberg that all the necessary changes have been made to fix the problem. A check by Bloomberg showed that the issue has been resolved. It’s unclear whether the fix will be enough to satisfy the retailers and affiliate partners that work with Phia.
TechCrunch reached out to Phia for comment and did not receive a response.
This article has been updated to clarify the famous investors in the company.
