Shopping startup Phia accused of 'cookie stuffing' affiliate fraud
Original: Phia accused of ‘cookie stuffing,’ taking affiliate credit on purchases it didn’t earn
Why This Matters
The case highlights growing scrutiny of affiliate marketing practices among well-funded startups, with potential legal and reputational consequences.
Phia, a shopping startup co-founded by Phoebe Gates and Sophia Kianni, has been accused of 'cookie stuffing' — a practice of injecting affiliate codes to claim commissions on sales it did not generate. A Bloomberg investigation led to Phia's suspension from affiliate platform Impact.com.
Phia, founded in 2025 and backed by over $40 million in funding from investors including Khloé Kardashian and Hailey Bieber, operates a browser extension app that helps users find the lowest prices and discount codes across online retailers, earning commissions through affiliate marketing. A Bloomberg investigation, supported by an independent consultant and a competitor, found that Phia was allegedly engaging in 'cookie stuffing': when a user visited an online retailer — even through their own navigation or another affiliate like Wirecutter — Phia would silently open a background tab, override existing referral codes during checkout, and inject its own affiliate code, taking unearned commissions. The practice led to Phia's suspension from Impact.com, a major affiliate and influencer marketing platform. After Bloomberg flagged the issue, a Phia spokesperson stated that all necessary changes had been made and a follow-up check confirmed the issue was resolved. However, it remains unclear whether the fix will satisfy affected retailers and affiliate partners. Phia has not responded to TechCrunch's request for comment. Cookie stuffing has previously led to legal action against other companies, including PayPal-owned Honey, which faces an ongoing class action lawsuit over similar allegations.