Bill Gates’ daughter’ startup Phia investigated for claiming commissions from online sales it didn’t generate: Report

Phia, the shopping startup co-founded by Phoebe Gates, daughter of Microsoft co-founder Bill Gates, has come under scrutiny after a Bloomberg investigation alleged the browser extension improperly solicited affiliate commissions through a practice known as “cookie stuffing.”

The company acknowledged a coding issue and said it had already fixed the problem. But the allegations have reignited the debate over affiliate marketing practices and how browser extensions earn commissions from online purchases.

What is Phia?

Phia, launched in 2025 by Phoebe Gates and entrepreneur Sophia Kianni, describes itself as a personal shopping assistant.

The browser extension helps shoppers compare prices between retailers, discover second-hand fashion items, and automatically search for discount codes as users browse online stores.

The startup has raised $43.5 million from investors like Notable Capital, Kleiner Perkins, and Khosla Ventures, as well as celebrity investors like Sydney Sweeney, Khloe Kardashian, Hailey Bieber, and former Meta executive Sheryl Sandberg.

The app was downloaded more than 1.2 million times last year, according to Appfigures estimates cited by Bloomberg.

What are the claims about Phia?

According to Bloomberg, Phia’s browser extension was automatically adding its own affiliate tracking code during the checkout process, even if users did not interact with the extension.

Bloomberg tested the extension on more than 50 retail websites and found that it silently opened a background browser tab before completing purchases.

This background tab loaded Phia’s affiliate link, displacing referral codes from other publishers and allowing Phia to receive commission for purchases it may not have influenced.

Independent affiliate marketing researcher Ben Edelman and Capital One Shopping reportedly reached similar conclusions after conducting separate tests.

What is affiliate marketing?

Affiliate marketing is a common online advertising model in which publishers, influencers, websites, or browser extensions receive commissions for referring shoppers to retailers.

Each affiliate receives a unique tracking code.

If a customer clicks on an affiliate link and completes a purchase, the retailer pays that affiliate a commission.

The system is designed to reward businesses that truly influence purchasing decisions.

What is ‘cookie stuffing’?

Cookie stuffing refers to the practice of placing an affiliate tracking cookie in a user’s browser without the user’s knowledge or a legitimate click.

If the customer later completes a purchase, the party that placed the cookie may receive credit and earn a commission even if they did not actually drive the sale.

According to affiliate marketing experts, this practice violates the policies of many affiliate networks and retailers.

“The most basic requirement of affiliate marketing is that the commission is paid only when the user clicks,” Ben Edelman told Bloomberg.

He added: “The rules do not allow fake clicks, simulated clicks, phantom clicks or hypothetical clicks. Only a real click will work.”

How did Bloomberg test the extension?

Bloomberg reported that it tested the Phia browser extension on more than 50 retail websites for a week.

According to the research, when users reached the checkout stage, the extension automatically opened a hidden background tab, briefly loading Phia’s affiliate link before closing.

Bloomberg observed similar behavior across multiple affiliate networks, including:

The publication also found the extension replacing referral links at major retailers like Walmart, Nike, and Zara.

In one example, Bloomberg clicked on a Nordstrom shopping link published by Wirecutter.

Prior to payment, Phia allegedly replaced Wirecutter’s affiliate tracking code with its own code.

Why are competitors worried?

Capital One Shopping, a competing browser extension, warned retailers that Phia was generating “fake clicks” and attempting to stuff cookies.

“Material revenue is generated from publishers like us,” the company said, according to an email reviewed by Bloomberg.

He added: “Advertisers like you are losing money because of fake clicks.”

Capital One said it sees it as its responsibility to warn retailers about potentially concerning practices in its partnership ecosystem.

How did Phia react?

Phia acknowledged the issue after Bloomberg contacted the company.

A spokesperson said the issue was caused by a newly released software version and has already been fixed.

According to the company: “In the last 24 hours, we have become aware that our codebase has been misattributed by a group of users in a recently released version.”

The company said engineers worked throughout the night to identify and resolve the problem.

Bloomberg later retested the extension and reported that the automatic redirect change had been discontinued.

Phia also maintained that it undergoes regular audits by its affiliate network partners and “maintains compliance at all times.”

Have affiliate networks taken action?

Yes.

Impact.com said it suspended Phia’s account after detecting behavior inconsistent with its policies.

The company said it is reviewing the affected transactions and working with Phia to determine what corrective action, if any, is required.