Startup Phia, co-founded by Phoebe Gates, daughter of Bill Gates, and Sophia Kiani, has been embroiled in a heated debate following allegations that the company used the practice known as "cookie stuffing" to take credit and commissions from online sales that may not have come from its service.
According to a Bloomberg report, internal Slack messages and company records suggest that Phia executives had known about the problem for months. This contradicts the company's statement in July that the problem had only been discovered in the past 24 hours.
What is "cookie stuffing"?
Phia works through a browser extension that helps users find discount codes at online stores. When a user interacts with a Phia offer, a “cookie” may record the sale so that the company receives a commission from the merchant.
The allegations relate to the use of cookies even in cases where the consumer had not actually used the service to make a purchase. In this way, Phia could record sales as revenue generated by it, even though it had not necessarily influenced the purchase decision.
According to Bloomberg, in June about 51% of the value of sales for which Phia claimed credit was related to this practice.
Messages that raise questions
The Bloomberg report cites a message dated December 18th in which Phoebe Gates asked developers to confirm that automatic cookie placement was working on all coupon pages so that Phia could benefit from the full value of sales.
The practice had allegedly been in use since at least December and involved sales tied to major brands, including Nike, Gap and Nordstrom.
Another element of the debate is the financial impact. After disabling the features in question in July, Phia's average daily revenue reportedly fell from around $80 to a range of $10 to $28. The company, however, disputes this interpretation and argues that other monetization methods were also disabled during the same period.
Phia promises investigation and refunds
Phia has stated that the features that caused inaccurate sales reporting were removed on July 7. The company also says it is reviewing the affected transactions and intends to refund commissions to partners who may have been harmed.
The startup has also announced the hiring of a compliance officer, with the aim of strengthening controls and preventing a similar incident from happening again.
Meanwhile, Impact.com, one of the affiliate marketing platforms with which Phia collaborated, has suspended cooperation with the company and reallocated commissions that were intended for Phia, according to Bloomberg.
Phia had secured around $30 million in funding in 2025, with investors including well-known names like Hailey Bieber, Kris Jenner and Spanx co-founder Sara Blakely.
The allegations pose a significant challenge for Phia as the company attempts to clarify how commissions are generated, restore partner trust, and address concerns over its affiliate marketing practices.
