Phia, the shopping enterprise co-founded by Phoebe Gates, the daughter of Bill Gates, alongside Sophia Kianni, faces accusations of engaging in a practice called “cookie stuffing,” which reportedly aided the product in obtaining commissions and credit for sales it allegedly did not produce, as highlighted by a Bloomberg investigation. 

This report has ignited controversy and resulted in Phia’s suspension from Impact.com, a prominent affiliate and influencer platform. Other startups have faced lawsuits related to “cookie stuffing,” including Honey, owned by PayPal, which is currently involved in an ongoing class action lawsuit. 

Established in 2025, Phia has secured over $40 million in funding, boasting a lineup of notable investors such as Khloé Kardashian and Hailey Bieber. The startup created an app functioning as a browser extension that resembles Google Flights, but is focused on shopping. Phia aids users in discovering the lowest-priced products from various retailers and provides discount codes for their purchases. The firm earns a commission on transactions conducted through its platform, a common industry practice referred to as affiliate marketing. 

The Bloomberg investigation, along with insights from an independent consultant and a competitor, revealed that whenever a user accessed an online retail site — even if they reached it independently or through a different affiliate program like Wirecutter — Phia would launch a new tab in the background. During the checkout phase, Phia would substitute the referral codes from other affiliates with its own, enabling it to claim credit for and possibly earn a commission on a purchase it did not generate. 

After the issue was brought to Phia’s attention, a spokesperson informed Bloomberg that all necessary steps had been taken to rectify the problem. A subsequent review by Bloomberg confirmed that the issue had been addressed. It remains uncertain if the resolution will be satisfactory for the retailers and affiliate partners collaborating with Phia.

TechCrunch has contacted Phia for a statement but has yet to receive a reply.

This article was revised to clarify the celebrity investors associated with the company.