A Chip Off the Old Block: Bloomberg Claims Startup Co-Founded by Bill Gates' Daughter Cheats on Sales Credit

Phia, a shopping startup co-founded by Phoebe Gates, the daughter of Microsoft co-founder Bill Gates, and Sophia Kianni, has come under scrutiny following allegations of engaging in a deceptive practice known as “cookie stuffing.” According to a recent investigation by Bloomberg, the company may have improperly taken credit for sales it did not generate, raising concerns about the integrity of its business model. This revelation has led to Phia being suspended from Impact.com, one of the largest affiliate and influencer platforms in the industry. The alleged misconduct involves a technical manipulation where Phia's browser-based application, designed to help users find the best deals across multiple retailers, would automatically open a new tab in the background during the checkout process. Even if a customer had initially visited a retail website independently or through another affiliate program such as Wirecutter, Phia would allegedly replace the existing referral code with its own. This allowed the company to claim credit for the sale and possibly receive a commission despite not having directed the customer to the retailer in the first place. Bloomberg’s investigation into this matter included insights from an independent consultant and a rival company within the same space. These third-party analyses corroborated the claims against Phia, suggesting that the practice was not isolated but part of a broader pattern seen in similar cases. For instance, the company Honey, which is currently owned by PayPal, faced legal challenges over the same type of behavior and is still entangled in a class-action lawsuit. Phia was founded in 2025 and quickly gained attention due to its high-profile investor base, which includes celebrities such as Khloé Kardashian and Hailey Bieber. The startup secured over $40 million in funding, reflecting confidence from both traditional venture capital firms and notable personalities in entertainment and fashion. Its primary offering is a browser extension that functions similarly to Google Flights but focuses on helping consumers locate the most affordable products along with applicable discounts. As part of its revenue model, Phia earns commissions through affiliate marketing, a common practice among digital platforms that facilitate consumer purchases. Following the exposure of these practices, a representative from Phia informed Bloomberg that appropriate measures had already been implemented to address the issue. Subsequent checks conducted by the publication indicated that the problem appeared to have been resolved. However, it remains uncertain whether these adjustments will be sufficient to restore trust among the retailers and affiliate networks that collaborate with Phia. Despite reaching out to Phia for further clarification, TechCrunch has yet to receive a formal response from the company regarding the allegations and the steps taken to rectify them. The situation highlights the growing concerns around transparency and ethical standards in the rapidly evolving landscape of digital commerce. As the investigation unfolds, stakeholders are closely watching how Phia navigates the fallout and whether it can maintain its position in the competitive market while addressing the serious accusations leveled against it. The implications of this incident extend beyond just Phia. It underscores the need for stricter oversight and clearer guidelines in the affiliate marketing sector, where the potential for abuse exists due to the reliance on referral tracking mechanisms. With the rise of numerous platforms vying for consumer attention and engagement, ensuring fair competition and honest practices becomes increasingly critical. As the story develops, the responses from affected parties and regulatory bodies will play a pivotal role in shaping the future of this segment of the e-commerce ecosystem.