Phia, the browser extension and shopping app co-founded by Phoebe Gates and entrepreneur Sophia Kianni, is currently under intense scrutiny. A recent investigation by Bloomberg has raised allegations that Phia improperly claimed affiliate commissions through a controversial practice known as "cookie stuffing."
Allegations of Improper Affiliate Tracking
The core of the controversy stems from claims that Phia's browser extension automatically inserted its own affiliate tracking code during the checkout process on various retail websites. This allegedly occurred even when users had not directly interacted with the extension to initiate a purchase. Bloomberg's testing, conducted over a week on more than 50 retail sites, reportedly found that the extension silently opened a background browser tab just before purchases were completed. This tab would briefly load Phia's affiliate link, potentially overriding referral codes from other publishers and allowing Phia to receive commissions for sales it may not have influenced.
Independent affiliate marketing researcher Ben Edelman and competing extension Capital One Shopping reportedly reached similar conclusions in separate tests.
What is "Cookie Stuffing"?
Affiliate marketing is a common online advertising model where publishers, influencers, or extensions earn commissions for directing shoppers to retailers. Each affiliate receives a unique tracking code. When a shopper clicks an affiliate link and makes a purchase, the retailer pays that affiliate a commission, rewarding them for influencing the buying decision.
"Cookie stuffing," the practice at the center of the dispute, involves placing an affiliate tracking cookie on a user's browser without their knowledge or a legitimate click. If the shopper later completes a purchase, the party that inserted the cookie can claim credit and earn a commission, regardless of their actual role in influencing the sale. Affiliate marketing experts generally agree that this practice violates the policies of many affiliate networks and retailers.
Ben Edelman emphasized to Bloomberg that the fundamental requirement in affiliate marketing is that "commission is only paid if a user clicks." He stressed that rules do not permit "fake clicks, simulated clicks, imaginary clicks or hypothetical clicks. Only a real click will do."
Phia's Response and Remedial Actions
Phia, which launched in 2025 and has raised $43.5 million from investors including Notable Capital, Kleiner Perkins, and Khosla Ventures, alongside celebrity investors like Sydney Sweeney and Khloe Kardashian, acknowledged the issue after being contacted by Bloomberg. A company spokesperson stated that a recent software release had caused "misattributions from a subset of users." Phia's engineers reportedly worked overnight to identify and resolve the problem, and subsequent retesting by Bloomberg indicated that the automatic referral replacement had ceased.
The company also asserted that it undergoes regular audits by affiliate network partners and has "always maintained compliance."
Impact on Affiliate Networks
Following the revelations, Impact.com, one of the affiliate networks involved, suspended Phia's account. The network cited behavior inconsistent with its policies and confirmed it is reviewing affected transactions to determine necessary corrective actions.