Phia, the shopping startup co-founded by Phoebe Gates and Sophia Kianni, has been accused of using a deceptive practice known as "cookie stuffing" to claim affiliate commissions on purchases it did not generate. A Bloomberg investigation uncovered the mechanism, raising concerns about transparency in affiliate marketing.
How the cookie stuffing scheme worked
According to Bloomberg's probe, backed by an independent consultant and a competitor, Phia's browser extension would override other affiliates' tracking cookies. When a user visited an online retailer, even by arriving directly or through another affiliate site like Wirecutter, Phia opened a background tab. During checkout, the extension replaced other referral codes with its own, allowing Phia to take credit and receive a commission on sales it didn't earn.
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Impact.com suspension and legal risks
Cookie stuffing is prohibited by most affiliate networks. Impact.com suspended Phia after the investigation. Similar practices have led to lawsuits, such as the ongoing class action against PayPal's Honey. Founded in 2025, Phia raised over $40 million from celebrity investors including Khloé Kardashian and Hailey Bieber. A Phia spokesperson told Bloomberg that the issue has been fixed, but it remains unclear if partners will be satisfied.
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This controversy echoes other tech scandals. For instance, Even Realities G2 smart glasses focus on productivity without cameras, while Apple expands Tap to Pay in stores to streamline contactless payments.
For more background on affiliate marketing, see Wikipedia's entry on affiliate marketing.
