Phoebe Gates's Shopping App Phia Suspended Over 'Cookie Stuffing' Accusations

Phia, the shopping startup co-founded by Phoebe Gates and climate activist Sophia Kianni, is facing serious allegations that it manipulated affiliate tracking systems to claim sales commissions it had no legitimate role in generating. The controversy, triggered by a Bloomberg investigation, has already resulted in the company's suspension from a major affiliate marketing platform.

What Is 'Cookie Stuffing' and What Did Phia Allegedly Do?

Affiliate marketing depends on accurate attribution — when a platform directs a customer to a retailer and that customer completes a purchase, the platform earns a commission. "Cookie stuffing" is a form of manipulation in which a company injects its own tracking cookies into a user's browser without earning the referral, effectively stealing credit from other legitimate affiliates.

According to TechCrunch, Bloomberg's investigation — corroborated by findings from an independent consultant and a competing firm — found that Phia's browser extension would open a hidden background tab when a user visited an online retailer, regardless of how they arrived at the site. During checkout, the extension would overwrite referral codes placed by other affiliates, including established outlets like Wirecutter, and replace them with Phia's own. The result: Phia could collect a commission on sales it played no part in driving.

Suspension and Industry Fallout

Following the Bloomberg report, Impact.com — one of the most widely used affiliate and influencer marketing platforms — suspended Phia from its network. The consequences extend beyond reputational damage. Retailers and affiliate partners who unknowingly paid out commissions on sales Phia didn't earn may have grounds to seek remedies.

The situation draws uncomfortable parallels to the legal troubles surrounding Honey, PayPal's coupon and deal extension, which is currently the subject of an ongoing class action lawsuit over similar allegations. The fact that other companies have faced litigation over cookie stuffing raises questions about what legal exposure Phia might now face.

A Well-Funded Startup Under Scrutiny

Founded in 2025, Phia positioned itself as a smarter way to shop online — functioning somewhat like a price-comparison engine for retail, surfacing the lowest available prices and discount codes across multiple merchants. The company charges retailers a commission on purchases completed through its platform, a standard and accepted model within affiliate marketing.

What set Phia apart in the market, at least initially, was its backing. The startup has raised more than $40 million in funding from a high-profile investor roster that includes Khloé Kardashian and Hailey Bieber. The involvement of Phoebe Gates — daughter of Microsoft co-founder Bill Gates, whose own public profile has drawn significant media attention — gave the venture considerable visibility from the outset.

Phia's Response and Current Status

Once the alleged misconduct was flagged directly to the company, a Phia spokesperson told Bloomberg that the necessary technical changes had been implemented. A subsequent check by Bloomberg confirmed the problematic behavior had stopped. However, the fix addresses the conduct going forward — it does not resolve questions about commissions already collected through the disputed method, nor does it guarantee that retail and affiliate partners will be satisfied.

Phia has not publicly addressed the broader allegations in detail. The company did not respond to a request for comment from TechCrunch, and no statement has been issued acknowledging the scope of the issue or outlining any remediation plan for affected partners.

What Comes Next

The affiliate marketing industry relies heavily on trust and accurate data. A startup accused of undermining that foundation — even if the technical issue has been corrected — faces a steep climb to rebuild credibility with the platform partners and retailers it needs to operate. Whether Impact.com's suspension is lifted, and under what conditions, remains to be seen.

For a company less than a year old with $40 million behind it and celebrity co-founders, the timing could not be more damaging. Investors and users alike will be watching how Phia handles the scrutiny — and whether the business model can survive it.

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