Phia, a shopping startup co-founded by Phoebe Gates, daughter of Bill Gates, and her friend Sophia Kianni, is currently facing serious allegations of "cookie stuffing," a questionable affiliate marketing tactic. According to a Bloomberg investigation, Phia allegedly manipulated affiliate tracking codes to claim credit and commissions on purchases it did not actually drive. This practice, which involves overriding other affiliates’ referral codes by opening background tabs during checkout, has raised significant ethical and legal concerns within the e-commerce industry.

The startup, launched in 2025 with a concept similar to Google Flights but for shopping, provides users with the ability to find the best prices and discount codes across various retailers through its browser extension. The company earns revenue through affiliate commissions on sales generated via its platform. However, the investigation revealed that even when users visited retailers on their own or through other affiliate programs like Wirecutter, Phia would still intervene and replace those referral credits with its own, thereby unjustly benefiting from sales it did not facilitate.

Phia has garnered more than $40 million in funding from high-profile investors such as Khloé Kardashian and Hailey Bieber, adding to the company's visibility and initial success. The revelations led to Phia being suspended from Impact.com, a prominent affiliate and influencer platform, highlighting the gravity of the accusations. This incident echoes similar controversies faced by other startups in the affiliate marketing space, like Honey, which is currently involved in a class action lawsuit over comparable cookie-stuffing practices.

Following the exposure of the issue, a spokesperson for Phia claimed that necessary fixes had been implemented to resolve the problem, with Bloomberg confirming that the malfunction had been addressed. Despite this, it remains uncertain whether these corrective measures will satisfy Phia’s retailer partners and competitors. TechCrunch reached out to Phia for comment but did not receive a response as of the article’s publication on July 10, 2026.