Competitors Suspected Phia of Misappropriating Commissions Before "Cookie Stuffing" Revelation
Industry players in affiliate marketing had suspicions about Phia months before the startup, co-founded by Phoebe Gates, was accused of siphoning commissions.
Companies within the affiliate marketing sector harbored suspicions about startup Phia's practices months prior to the revelation that the company allegedly engaged in commission misappropriation. Phia, co-founded by Phoebe Gates, daughter of Microsoft co-founder Bill Gates, is accused of embedding its tracking code within competitor affiliate links, thereby claiming credit for sales it did not generate.
Kristine Locker, founder of the affiliate shopping tool Locker, and Chris Lucas, CEO of luxury handbag reseller SecondSense, both reported a noticeable decline in sales during the spring of 2026. The decreases could not be attributed to changes in user activity or click-through rates. Their concerns were amplified when Bloomberg reported in June 2026 on Phia's alleged methods.
In affiliate marketing, companies provide links that direct consumers to retailers. When a purchase is made through such a link, the affiliate marketer receives a commission. Users of Phia's browser extension reportedly encountered an invisible tab that claimed referral credit for purchases, allowing Phia to divert commissions intended for other marketers.
Phia has denied intentional misconduct, stating that a recent update caused misattributions. Industry experts suggest Phia's actions violate rules set by major affiliate networks. Entities investigating Phia's conduct, including Capital One Shopping, have alerted retailers to Phia's alleged practices.