Phia startup faces allegations of fraudulent cookie stuffing practices

The startup Phia, co-founded by Phoebe Gates and Sophia Kianni, is facing serious allegations regarding the use of 'cookie stuffing' to illicitly claim commissions on online sales. According to a Bloomberg report published in August 2026, the company’s browser extension, designed to identify discount codes for shoppers, allegedly placed tracking cookies even when users were not actively utilizing the service. This practice resulted in the company receiving credit and financial commissions for transactions it did not facilitate.

Internal communication logs from Slack and corporate records indicate that the founders were aware of these technical issues for several months. This contradicts a public statement issued by Phia in July, in which the company claimed it had only become aware of the irregularities within the previous 24 hours. Legal experts, such as attorney Ariel Givner, have warned that such actions could lead to severe penalties under United States law, as the practice involves the unauthorized manipulation of affiliate marketing systems.

While the company has reportedly begun returning commissions to affected partners, the revelation of the internal documents has raised concerns regarding corporate transparency. There is no information yet on specific legal filings or pending court dates, though the potential for significant legal consequences remains a major point of discussion in the tech industry.