The startup, which launched in 2025 and secured over $40 million in funding from high-profile backers including Kim Kardashian and Hailey Bieber, functions as a price-comparison tool similar to Google Flights. The core of the controversy involves the app’s background behavior: findings from an independent consultant and a competitor revealed that Phia would open hidden tabs during a user’s checkout process to swap existing referral codes with its own. This maneuver effectively hijacked credit for transactions previously attributed to other sources like Wirecutter or direct traffic.
Phia faces cookie stuffing allegations over diverted affiliate commissions
A Bloomberg investigation has implicated the shopping startup Phia, co-founded by Phoebe Gates and Sophia Kianni, in “cookie stuffing”—a practice that allegedly allowed the browser extension to override referral codes and claim affiliate commissions for sales it did not generate, resulting in its suspension from the Impact.com platform.
While the company’s spokesperson confirmed to Bloomberg that technical adjustments were implemented to resolve the issue, the long-term impact on its business relationships remains uncertain. The practice of cookie stuffing has previously triggered significant legal scrutiny in the tech sector, most notably in an ongoing class action lawsuit against the PayPal-owned discount tool Honey. Phia has not provided comment to TechCrunch regarding the allegations or the broader implications for its affiliate marketing strategy.
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