Phia Under Fire: Allegations of Fraudulent Affiliate Credit for Unearned Purchases

The Controversy Surrounding Phia, the Shopping Startup Co-Founded by Bill Gates’ Daughter

Phia, a shopping startup co-founded by Phoebe Gates, daughter of Bill Gates, and Sophia Kianni, has recently come under fire for allegedly engaging in a practice known as “cookie stuffing.” This controversial practice may have allowed Phia to receive commissions and credit for sales it did not actually generate, as revealed by a comprehensive investigation conducted by Bloomberg.

The fallout from this revelation has been significant, resulting in Phia’s suspension from Impact.com, a prominent affiliate and influencer platform. This situation is reminiscent of previous legal battles faced by other startups accused of similar practices, such as Honey, owned by PayPal, which is currently embroiled in a class-action lawsuit.

The Rise and Fall of Phia

Established in 2025, Phia quickly garnered attention and support, securing over $40 million in funding from a notable roster of investors, including celebrities like Khloé Kardashian and Hailey Bieber. The startup introduced an innovative app in the form of a browser extension, akin to Google Flights but tailored for shopping purposes. Phia’s platform assists users in locating the best deals from various retailers, along with providing exclusive discount codes. In return, the company earns a commission through affiliate marketing, a common practice in the industry.

However, the recent investigation by Bloomberg, along with corroborating evidence from an independent consultant and a competitor, exposed a concerning tactic employed by Phia. It was discovered that the startup would surreptitiously interfere with referral codes from other affiliates when users shopped online, redirecting credit to itself and potentially earning commissions on transactions it had not facilitated.

Upon being confronted with these allegations, Phia assured Bloomberg that corrective measures had been promptly implemented. Subsequent checks confirmed the resolution of the issue. Nevertheless, the lingering question remains whether these actions will be sufficient to restore trust among retailers and affiliate partners associated with Phia.

Seeking Transparency and Accountability

Despite these developments, TechCrunch’s attempt to elicit a response from Phia regarding the controversy has thus far been met with silence. Transparency and accountability are crucial in situations like these, especially when the integrity of a company’s operations is called into question.

This article has been updated to provide clarity on the celebrity investors involved with the company.