HomeCorporatePhia faces scrutiny over alleged affiliate commiss...
Corporate

Phia faces scrutiny over alleged affiliate commission manipulation

Phia faces scrutiny over alleged affiliate commission manipulation

The AI shopping startup Phia, co-founded by Phoebe Gates and Sophia Kianni, faces allegations of cookie stuffing that may have diverted sales commissions. Following a Bloomberg investigation into the company’s referral practices, the startup has been suspended from the affiliate platform Impact.com, casting a shadow over its recent $185 million valuation.

The investigation revealed that Phia’s browser-based shopping agent allegedly operated by opening background tabs during user checkouts. The tool reportedly triggered a process that overwrote existing referral codes from other affiliates, effectively injecting its own tracking data to claim credit for sales the startup did not facilitate. This practice, commonly referred to as cookie stuffing, allows entities to siphon commissions from legitimate traffic sources.

Founded in 2025, the company secured $35 million in a Series A round earlier this year, backed by firms including Notable Capital, Khosla Ventures, and Kleiner Perkins. While a spokesperson for Phia informed Bloomberg that technical adjustments were implemented to resolve the issue, the long-term impact on the firm's standing with retail partners remains uncertain. The company has not provided further comment regarding the accusations or the subsequent suspension from Impact.com.

Share:TelegramXFacebook

Read Also

Comments (0)

Leave a comment

No comments yet. Be the first!