Phia, the shopping startup co-founded by Bill Gates’ daughter Phoebe Gates and Sophia Kianni, has been accused of a practice known as “cookie-cutter stuffing,” which may have helped the product receive commissions and credit for sales it didn’t actually generate, according to a Bloomberg investigation.

The report sparked controversy and led to Phia’s suspension from Impact.com, a leading influencer and affiliate platform. Other startups have been sued for “cookie stuffing,” notably Honey, which is owned by PayPal and remains the subject of an ongoing class-action lawsuit.

Founded in 2025, Phia has raised more than $40 million in funding and has a star-studded list of investors, including Khloé Kardashian and Hailey Bieber. The startup developed an app as a browser extension that works similarly to Google Flights, but for purchase. Phia helps customers find the lowest priced items at various retailers, as well as discount codes to use when shopping. The company charges a commission for purchases made through the platform, an industry practice known as affiliate marketing.

Bloomberg’s investigation, as well as findings from an independent consultant and a competitor, found that if a user shopped at an online retailer, even if they came to the site on their own or through another affiliate program like Wirecutter, Phia would open a new tab in the background. During the checkout process, Phia would override other affiliates’ referral codes and instead inject his own, allowing him to take credit and potentially receive a commission for a purchase he didn’t earn.

Once the issue was brought to Phia’s attention, a spokesperson told Bloomberg that all necessary changes had been made to fix the issue. A Bloomberg check found that the issue had been resolved. It is unclear whether the solution is enough to satisfy retailers and affiliate partners working with Phia.

TechCrunch reached out to Phia for comment and did not receive a response.

This article has been updated to clarify who the company’s celebrity investors are.