Phia, a shopping startup co-founded by Bill Gates’ daughters Phoebe Gates and Sophia Kiani, has been accused of a practice known as “cookie stuffing,” according to a Bloomberg investigation. Cookie stuffing may have helped you earn commissions and credits for sales your product didn’t actually generate.
The report sparked controversy and led to Phia’s suspension from Impact.com, a leading affiliate and influencer platform. Other startups have also been accused of ‘cookie stuffing’, most notably Honey, which is owned by PayPal and continues to be the subject of class action lawsuits.
Founded in 2025, Phia has raised more than $40 million in funding and has a long list of star investors, including Kim Kardashian and Hailey Bieber. The startup has developed an app that is somewhat similar to Google Flights, but as a browser extension for shopping. Phia helps customers find the cheapest items from a variety of retailers, as well as discount codes to use when shopping. The Company receives commissions on purchases made through its platform, through an industry practice known as affiliate marketing.
A Bloomberg study, as well as findings from independent consultants and competitors, found that when users shopped at an online retailer (even if they accessed the site directly or through another affiliate program like Wirecutter), Phia opened a new tab in the background. During the checkout process, Phia ignored the other affiliate’s referral code and instead inserted her own referral code, allowing her to receive credit for purchases she didn’t earn and potentially earn a commission.
Once the issue was reported to Phia, a spokesperson told Bloomberg that all necessary changes had been made to resolve the issue. A Bloomberg investigation found that the problem has been resolved. It’s unclear whether the fixes will be enough to satisfy the retailers and affiliate partners Phia works with.
TechCrunch reached out to Phia for comment but did not receive a response.
