Bill Gates' daughter Phoebe Gates' shopping app is under scrutiny. Here's why

Bill Gates' daughter Phoebe Gates' shopping startup, Phia, is facing scrutiny after a Bloomberg investigation alleged that its browser extension improperly claimed affiliate commissions through a practice known as "cookie stuffing".

The company has acknowledged a coding issue, saying it stemmed from a recent software release and has since been fixed. The allegations have nevertheless reignited debate over how browser extensions earn commissions from online purchases and whether they should be rewarded for sales they did not directly influence, according to a report by Mint.

Launched in 2025 by Phoebe Gates and entrepreneur Sophia Kianni, Phia is a browser extension designed to help shoppers compare prices across retailers, find second-hand fashion deals and automatically search for discount codes while shopping online.

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The startup has raised $43.5 million from investors including Notable Capital, Kleiner Perkins and Khosla Ventures, alongside celebrity investors such as Sydney Sweeney, Khloe Kardashian, Hailey Bieber and former Meta executive Sheryl Sandberg. According to Appfigures estimates cited by Bloomberg, the app has been downloaded more than 1.2 million times over the past year.

What sparked the controversy?

According to Bloomberg, Phia's browser extension automatically inserted its own affiliate tracking code during the checkout process, even when users had not interacted with the extension.

The publication said it tested the extension on more than 50 retail websites over the course of a week. It found that the extension silently opened a background browser tab before purchases were completed. That tab briefly loaded Phia's affiliate link, replacing referral codes from other publishers and allowing Phia to receive commissions for purchases it may not have influenced.

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

How affiliate commissions work

Affiliate marketing is a common online advertising model in which publishers, influencers, websites and browser extensions earn commissions for directing shoppers to retailers.

Each affiliate receives a unique tracking code. If a shopper clicks an affiliate link and later completes a purchase, the retailer pays that affiliate a commission. The system is designed to reward businesses that genuinely influence buying decisions.

The practice at the centre of the row

The controversy centres on a practice known as "cookie stuffing", where an affiliate tracking cookie is placed on a user's browser without their knowledge or without a legitimate click.

If the shopper later completes a purchase, the party that inserted the cookie can receive credit for the sale—and earn a commission—even if it played no role in influencing the purchase.

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

Ben Edelman told Bloomberg: "The most fundamental requirement in affiliate marketing is that commission is only paid if a user clicks."

He added: "The rules don't allow fake clicks, simulated clicks, imaginary clicks or hypothetical clicks. Only a real click will do."

What Bloomberg's testing found

Bloomberg reported testing Phia's browser extension across more than 50 retail websites.

According to the investigation, whenever users reached the checkout stage, the extension automatically opened a hidden background tab that briefly loaded Phia's affiliate link before closing.

The publication reported seeing similar behaviour across affiliate networks including Impact.com, CJ Affiliate, Rakuten and Awin.

It also alleged that the extension replaced referral links on major retailers including Walmart, Nike and Zara. In one example, Bloomberg said Phia replaced Wirecutter's affiliate tracking code with its own after a user clicked a Nordstrom shopping link.

Competitors push back

Capital One Shopping, a competing browser extension, warned retailers that Phia was generating "fake clicks" and engaging in cookie stuffing.

According to an email reviewed by Bloomberg, the company said: "Publishers like us are having material revenue taken."

It added: "Advertisers like you are losing money to fake clicks."

Capital One said it believed retailers should be alerted to practices that could undermine the affiliate marketing ecosystem.

Phia says the issue has been fixed

After Bloomberg contacted the company, Phia acknowledged the issue and said it resulted from a recent software release.

A spokesperson said: "Within the last 24 hours, we were made aware that in a recent release our codebase was causing misattributions from a subset of users."

The company said its engineers worked overnight to identify and resolve the problem. Bloomberg later retested the extension and reported that the automatic referral replacement had stopped.

Phia also said it undergoes regular audits by affiliate network partners and has "always maintained compliance."

Affiliate network takes action

Impact.com said it suspended Phia's account after detecting behaviour that it said was inconsistent with its policies.

The affiliate network said it is reviewing affected transactions and working with Phia to determine what corrective action, if any, may be required.