Key facts
- Phia, a shopping startup co-founded by Phoebe Gates and Sophia Kianni, is accused of 'cookie stuffing'.
- This practice allegedly allowed Phia to claim commissions on sales it did not generate.
- The company has been suspended from the affiliate platform Impact.com.
- Competitors and an independent consultant found evidence of the practice.
- Phia stated that the issue has been resolved after being flagged.
Phia, a shopping startup co-founded by Phoebe Gates and Sophia Kianni, has been accused of 'cookie stuffing,' a practice that allegedly allowed it to fraudulently claim commissions on sales it did not earn. According to a Bloomberg investigation, Phia would open a new tab in the background while a user was checking out, overriding referral codes from other affiliates and injecting its own. This led to its suspension from Impact.com, a prominent affiliate and influencer platform.
Other startups, such as Honey (owned by PayPal), have faced similar accusations and lawsuits. Phia, founded in 2025, has raised over $40 million from investors including Kim Kardashian and Hailey Bieber. The company developed an app that functions as a browser extension, helping users find the lowest prices and discount codes across various retailers, earning commissions through affiliate marketing.
An independent consultant and a competitor also found evidence supporting the 'cookie stuffing' claims. Following the flagging of the issue, a Phia spokesperson told Bloomberg that necessary changes had been implemented to resolve the problem, which Bloomberg confirmed. It remains unclear if these fixes will satisfy Phia's retail and affiliate partners.