Phia suspended from Impact.com over affiliate fraud claims
A well-funded shopping extension backed by celebrity investors has been suspended from a major affiliate network following allegations it hijacked commissions from other platforms, raising fresh scrutiny over digital marketing practices.
Shopping startup Phia has been suspended from Impact.com, a leading affiliate and influencer platform, following accusations that it secretly hijacked commissions from rival platforms.
An investigation found that Phia engaged in a practice known as "cookie stuffing." If a user visited an online retailer directly or through another affiliate like Wirecutter, Phia would reportedly open a new browser tab in the background. During checkout, the extension would override the legitimate referral codes and inject its own, allowing Phia to collect commissions on sales it did not generate.
The revelations are a significant blow to a company that has rapidly attracted major financial backing. Founded in 2025 by Phoebe Gates and Sophia Kianni, Phia has raised more than $40 million. Its investor list includes Khloé Kardashian and Hailey Bieber. The startup operates as a browser extension that aggregates discounted prices and promo codes across various retailers, earning money through standard affiliate marketing commissions.
However, the mechanics of its growth now face intense scrutiny. Cookie stuffing undermines the financial model of legitimate product reviewers and affiliate networks, effectively siphoning revenue away from partners who actually drive consumer traffic. For retailers and digital publishers that rely heavily on affiliate marketing to reach consumers, such practices represent a direct threat to the integrity of the online advertising ecosystem.
The allegations against Phia carry added weight given recent industry enforcement. Honey, a similar shopping tool owned by PayPal, is currently the subject of an ongoing class action lawsuit over identical cookie stuffing claims.
Phia has moved to contain the damage. A company spokesperson stated that all necessary changes were made to fix the issue after it was flagged, and a subsequent check confirmed the background tab behavior had stopped. TechCrunch reported that Phia did not respond to its request for comment, and it remains uncertain whether this technical fix will be sufficient to restore trust among retailers and affiliate partners.
