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Phia, the commerce startup co-founded by Bill Gates’ daughter Phoebe Gates and Sophia Kianni, was accused of a practice known as “cookie stuffing,” which may have helped the product receive commissions and credits for sales it didn’t actually generate. according to a Bloomberg survey.
The report sparked controversy and led to Phia’s suspension from her position. Impact.coma leading affiliate and influencer platform. Other startups have been sued for “cookie stuffing,” including Honey, which is owned by PayPal and is still the subject of a pending class-action lawsuit.
Founded in 2025, Phia raised more than $40 million in funding and has a roster of high-profile investors, including Khloé Kardashian and Hailey Bieber. The startup developed an app as a browser extension that works a lot like Google Flights, but for shopping. Phia helps customers find the cheapest items from various retailers as well as discount codes to use when shopping. The company charges a commission on purchases made through the platform, an industry practice known as affiliate marketing.
Bloomberg’s investigation, along with findings from an independent consultant and a competitor, found that if a user shopped at an online retailer — even if they arrived at the site on their own or through another affiliate program like Wirecutter — Phia would open a new tab in the background. During the checkout process, Phia would replace other affiliates’ referral codes and instead inject her own, allowing her to take credit and potentially receive a commission on a purchase she did not earn.
After the issue was reported to Phia, a spokesperson told Bloomberg that all necessary changes had been made to resolve the issue. A check by Bloomberg found that the problem had been resolved. It’s unclear if the fix is enough to satisfy retailers and affiliate partners who work with Phia.
TechCrunch reached out to Phia for comment and did not receive a response.
This article has been updated to clarify the company’s celebrity investors.
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