Phia, the AI-powered shopping startup co-founded by Phoebe Gates, daughter of Microsoft co-founder Bill Gates, is facing allegations that it improperly claimed commissions for online purchases it did not generate. According to a Bloomberg investigation, the browser extension allegedly used a practice known as “cookie stuffing”, allowing it to override affiliate tracking links and take credit for sales that were actually referred by other publishers. The allegations have triggered fresh scrutiny of affiliate marketing practices and prompted one of the industry’s largest tracking platforms to suspend the startup.
Phia, launched in 2025 by Phoebe Gates and climate activist Sophia Kianni, positions itself as an AI-powered shopping assistant that helps users find lower prices, compare products, and discover discount codes across online retailers. Like many shopping extensions, the company earns commissions through affiliate marketing when users make purchases through its platform.
What Is the Allegation?
According to Bloomberg’s investigation, Phia’s browser extension allegedly opened a hidden browser tab during the checkout process and inserted its own affiliate tracking code.
This process reportedly replaced the referral codes of other publishers—including review websites, influencers, and cashback platforms—even when shoppers had originally reached the retailer through those sources.
As a result, Phia could receive affiliate commissions for purchases it did not directly influence.
| Allegation | Reported Details |
|---|---|
| Practice | Cookie stuffing / affiliate cookie replacement |
| Effect | Overwrites another affiliate’s referral code |
| Result | Phia may receive commission for sales it did not generate |
| Investigation | Bloomberg, supported by independent testing |
Independent affiliate marketing researcher Ben Edelman and competing browser extension Capital One Shopping reportedly reached similar conclusions after reviewing the software’s behavior.
What Is Cookie Stuffing?
Cookie stuffing is a controversial affiliate marketing practice in which tracking cookies are placed or replaced without a genuine referral from the affiliate.
Normally, affiliate commissions are paid when a customer intentionally clicks an affiliate link before completing a purchase.
In the alleged scenario, Phia’s extension reportedly injected its own tracking identifier automatically during checkout, potentially redirecting commissions away from the original referral source.
| Legitimate Affiliate Marketing | Alleged Cookie Stuffing |
|---|---|
| User intentionally clicks affiliate link | Tracking code inserted automatically |
| Affiliate earns commission for genuine referral | Another affiliate’s commission may be replaced |
| Transparent attribution | Attribution may be altered without user action |
Because affiliate marketing relies heavily on accurate attribution, practices such as cookie stuffing have previously resulted in lawsuits and platform bans across the industry.
Phia Says the Issue Has Been Fixed
Following the investigation, Phia acknowledged that the behavior existed but said it was unintentional and has since been corrected.
According to the company, all necessary technical changes have been implemented to stop the referral code replacement. Bloomberg subsequently reported that its follow-up testing indicated the issue had been resolved.
However, it remains unclear whether the fix will fully satisfy affiliate partners, retailers, or advertising platforms affected by the alleged behavior.
Impact on the Startup
The controversy has already produced tangible consequences.
According to reports, Impact.com, one of the world’s largest affiliate marketing platforms, suspended Phia following the allegations while the matter is reviewed.
| Impact | Status |
|---|---|
| Impact.com partnership | Suspended |
| Company response | Says issue has been fixed |
| Independent verification | Bloomberg reports behavior no longer observed |
| Regulatory action | None announced |
The suspension could temporarily affect Phia’s ability to participate in affiliate programs operated through the platform.
A Fast-Growing Startup Under Scrutiny
Phia has attracted significant investor interest since its launch.
The company has reportedly raised more than $40 million from venture capital firms and celebrity investors, positioning itself as an AI-powered shopping assistant that helps consumers compare prices and discover discounts across multiple retailers.
The allegations come at a sensitive time as AI-powered shopping tools become increasingly popular and competition intensifies among browser extensions offering automated coupon discovery and price comparison services.
What It Means for Affiliate Marketing
The allegations against Phia highlight the growing importance of transparency and trust within the affiliate marketing ecosystem. Publishers, influencers, and review platforms depend on accurate referral attribution to earn commissions, making any manipulation of affiliate tracking a serious concern for retailers and advertising networks.
While Phia says it has already fixed the issue, the incident is likely to increase scrutiny of AI-powered shopping extensions and browser tools that automatically interact with retailer websites. As these services become more sophisticated, affiliate networks and e-commerce companies may introduce stricter monitoring to ensure commissions are awarded only for genuine customer referrals.
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