Phia Accused of “Cookie Stuffing”: An In-Depth Look into the Allegations
Phia, the commerce startup co-founded by Bill Gates’ daughter Phoebe Gates and climate activist Sophia Kianni, recently found itself at the center of a controversy. A Bloomberg investigation accused the company of “cookie stuffing,” a deceptive practice that might have allowed Phia to earn commissions and credits for sales it didn’t legitimately generate.
The Allegations and Their Impact
The allegations against Phia have sparked significant controversy within the tech and e-commerce communities. As a result, the startup was suspended from Impact.com, a prominent affiliate and influencer platform. This decision highlights the seriousness of the accusations, as other companies like Honey, a PayPal-owned entity, have faced similar allegations and legal challenges. Honey is currently the subject of a pending class-action lawsuit.
Phia’s Business Model and Operations
Founded in 2025, Phia quickly gained attention and financial backing, raising over $40 million in funding. Its high-profile investors include celebrities Khloé Kardashian and Hailey Bieber. Phia developed an innovative app functioning as a browser extension, akin to Google Flights, but tailored for shopping. The platform assists customers in finding the best deals from a variety of retailers and provides discount codes, leveraging affiliate marketing to charge commissions on purchases made through its service.
Details of the Alleged “Cookie Stuffing” Practice
According to Bloomberg’s investigation, corroborated by findings from an independent consultant and a competitor, Phia engaged in “cookie stuffing” by manipulating users’ shopping sessions. The process involved opening a new tab in the background during a user’s checkout process at an online retailer. This enabled Phia to replace other affiliates’ referral codes with its own, potentially earning commissions for sales it did not facilitate. Such practices undermine the integrity of affiliate marketing, raising concerns among retailers and partners.
Phia’s Response and Current Status
Following the exposure of these practices, Phia reportedly made the necessary changes to rectify the issue. A subsequent review by Bloomberg confirmed that the problem was addressed. However, it remains uncertain if these measures will be sufficient to restore trust with retailers and affiliate partners. Efforts by TechCrunch to obtain a comment from Phia went unanswered, leaving questions about the company’s future direction.
For more information on this developing story, visit the original report Here.
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