Shopping startup Phia, co-founded by Bill Gates’ daughter Phoebe Gates and Sophia Kianni, is under fire for allegedly using a tactic called cookie stuffing to take credit for online purchases it didn’t actually drive.
The company’s browser extension, which helps users find discounts and compare prices—think of it like Google Flights for shopping—was reportedly opening hidden tabs to override other affiliate links during checkout, siphoning commissions away from competitors like Wirecutter.
How Phia’s ‘cookie stuffing’ worked
According to a Bloomberg investigation, Phia’s tool would inject its own referral codes even if a shopper arrived at a retailer’s site independently or through another affiliate program. This allowed Phia to claim commissions on sales it didn’t facilitate.
The practice mirrors a lawsuit against PayPal-owned Honey, which remains entangled in a class action over similar allegations. Phia, which has raised over $40 million from high-profile investors like Kim Kardashian and Hailey Bieber, was suspended from Impact.com, a major affiliate platform, following the report.
Phia’s response and what’s next
Phia told Bloomberg it had fixed the issue, and a follow-up check confirmed the changes. However, it’s unclear whether this will satisfy retailers and partners. TechCrunch has reached out to Phia for further comment but has not yet received a response.
