Phia changed its browser extension after Bloomberg found it claiming affiliate commissions for referrals it had not generated. Startup Fortune argued the cookie stuffing scandal exposes a blind spot in investor scrutiny of the shopping app.
The app was founded by Phoebe Gates and Sophia Kianni. According to Startup Fortune’s account, Bloomberg tested the extension across more than 50 retail sites and found a consistent pattern.
The investigation described a hidden tab opening during checkout and inserting Phia’s referral code. That replaced the code belonging to the publisher that originally sent the shopper to a retailer.
Cookie Stuffing Scandal Exposes Commission Practices
Startup Fortune’s report cited a Nordstrom link from a Wirecutter review as an example. The described behavior displaced the referring publisher’s commission without a visible action by the shopper.
The account identified the practice as cookie stuffing and said it violated affiliate marketing rules. Independent researcher Ben Edelman told Bloomberg that a commission requires a real user making a real click.
According to the report, Edelman said the rules did not permit fake, simulated, imaginary or hypothetical clicks. Capital One Shopping conducted its own tests and independently corroborated Bloomberg’s findings.
Impact.com, the affiliate platform used by e-commerce brands, suspended Phia’s account after reviewing the behavior. The report described affiliate commissions as Phia’s business model, making the platform’s action consequential for the startup.
Phia Reported Changes After Being Contacted
Bloomberg contacted Phia on July 7, according to Startup Fortune. A spokesperson subsequently told Bloomberg that the necessary changes had been made.
A follow-up check by Bloomberg confirmed that the extension had stopped automatically claiming clicks it had not earned. The report said the behavior was patched after the outlet raised its findings with the company.
Startup Fortune said there had been no acknowledgment of how long the behavior operated before Bloomberg noticed it. The account criticized the lack of a broader public explanation beyond the statement to the reporter.
Funding Put Investor Scrutiny In Focus
Phia raised $43.5 million, according to the report. Kleiner Perkins led an $8 million seed round in September 2025.
Khosla Ventures and Notable Capital led a $35.5 million Series A in January. Kleiner Perkins participated again, while the angel investor list included more than 30 names from fashion, music, film and sport.
The named investors included Sydney Sweeney, Hailey Bieber, Paris Hilton, Priyanka Chopra Jonas, Khloé Kardashian and Kris Jenner. The report also listed Sara Blakely and Sheryl Sandberg among the angel investors.
Startup Fortune argued that investors should examine how a shopping app earns affiliate revenue, alongside its AI claims. It described Bloomberg’s checkout tests as scrutiny of the extension’s underlying referral mechanics.
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The extension was reportedly fixed, while the Impact.com suspension remained in place in Startup Fortune’s account. The report said nobody involved had stated whether other affiliate partnerships were still under review.
