Phia Accused of Affiliate Fraud
Shopping app Phia, co-founded by Phoebe Gates and Sophia Kianni, faces accusations of "cookie stuffing" that allegedly secured it credit for sales it did not drive. This practice led to Phia's suspension from a key affiliate platform.
Phia, a shopping startup co-founded by Phoebe Gates, daughter of Bill Gates, and Sophia Kianni, is facing accusations of engaging in "cookie stuffing." A Bloomberg investigation alleges this practice may have allowed the company to claim commissions and credit for sales it did not facilitate.
In response to the allegations, Impact.com, a significant affiliate and influencer marketing platform, has suspended Phia's account. Similar practices have led to legal challenges for other companies, including Honey, which is currently facing a class-action lawsuit.
Founded in 2025, Phia has secured over $40 million in funding and boasts high-profile investors such as Kim Kardashian and Hailey Bieber. The company's app operates as a browser extension designed to help users find the best prices and discount codes across retailers, earning a commission on purchases through affiliate marketing.
The investigation suggests that Phia may have utilized background processes to override other affiliates' tracking cookies with its own during the checkout phase. This tactic could have enabled Phia to receive credit and commissions for sales that were not the result of its direct influence. A Phia spokesperson reportedly told Bloomberg that the issue has been resolved, but it remains unclear if this fix will satisfy affected retailers and affiliate partners.