Phia Accused of Cookie Stuffing, Taking Affiliate Credit for Unearned Sales

Phia, the e‑commerce startup founded by Phoebe Gates and her friend Sophia Kianni, has come under scrutiny after a Bloomberg investigation revealed the company’s use of “cookie stuffing.” The practice, which involves planting tracking cookies on users’ devices without their knowledge, allegedly enabled Phia to earn commissions and credit for sales that it did not actually generate. The investigation highlighted how the company’s affiliate marketing strategy was designed to inflate revenue figures and attract investment.

According to Bloomberg, Phia’s cookie‑stuffing scheme involved embedding invisible pixels on partner websites that redirected traffic back to Phia’s platform. When visitors made purchases, the company claimed a commission, even though the sales were not directly linked to Phia’s own marketing efforts. The startup’s founders, both of whom have high‑profile backgrounds—Phoebe Gates as the daughter of Bill Gates and Sophia Kianni as a former tech executive—have faced calls for greater transparency and regulatory scrutiny over their affiliate practices.

The revelation has prompted questions about the ethical standards of emerging shopping platforms and the regulatory oversight of affiliate marketing. While Phia has not yet issued a formal response, industry observers are monitoring the situation closely, noting that similar tactics have led to investigations and fines for other tech firms. The case underscores the growing need for clearer guidelines on digital advertising and affiliate disclosures in the rapidly evolving e‑commerce landscape.