AI-powered shopping assistant Phia has been accused of using "cookie stuffing" to claim affiliate commissions for purchases it did not generate, according to a Bloomberg investigation. The company says the issue has now been resolved.
Phia is an AI shopping tool co-founded by Phoebe Gates, daughter of Bill Gates, and Sophia Kianni in 2024. The browser extension finds discount codes and helps users compare prices across retailers, earning a commission on qualifying sales.
As Kianni said in a recent interview: "more than 1.5 million users rely on Phia to search over 350 million products in real time".
The New York-based start-up recently closed a Series A funding round, raising more than $35.5 million. Its celebrity investors include Kris Jenner, Sydney Sweeney, Alix Earle, Jessica Alba and Paris Hilton.
Following an investigation by Bloomberg, alongside independent testing by researcher Ben Edelman, it was concluded that Phia claimed commissions from retailers for sales it did not generate.
After testing the extension across more than 50 websites, Bloomberg found that, during the checkout process, the extension automatically opened a background tab that loaded Phia's affiliate link to the retailer's website. This ensured its tracking cookie was set, replacing referrals from other publishers and advertisers.
Because this occurred only on mobile web browsers, users were unable to notice the additional tab opening before it closed again within seconds.
According to Bloomberg, this behaviour violated the terms of service of several major affiliate networks, including Impact.com, CJ Affiliate, Rakuten and Awin. It was observed on more than 50 major retail websites, including Walmart, Nike and Zara.
A Phia spokesperson acknowledged the issue, stating that it had since been resolved:
"Within the last 24 hours, we were made aware that in a recent release our codebase was causing misattributions from a subset of users. As soon as we were notified, our team worked overnight to identify, mitigate, and has since resolved the issue."
After receiving Phia's response, Bloomberg retested the browser extension and confirmed that it no longer automatically claimed referral clicks as it had previously done.
Read more
Iran said it was nearing a final pact with Oman defining new shipping lanes between them through the Strait of Hormuz but repeated that the U.S. must ...
Uzbekistan has secured preferential tariffs for fertiliser and petroleum product shipments through Kazakhstan’s Kuryk port to Georgian ports, as Uzb...
Police in eastern India used tear gas, batons and water cannon on Monday to disperse thousands of young protesters marching on the Jharkhand state leg...
An agreement between Iran and the U.S. to reopen the Strait of Hormuz is expected "soon," a U.S. official has said. The deal would result in the resumption of commercial shipping through the sea passage and the lifting of an American naval blockade on Iranian ports.
Flights arriving at Catania airport in eastern Sicily were suspended after volcanic ash from a new eruption of Mount Etna drifted into the airspace around the airport, disrupting operations at one of Italy’s busiest aviation hubs.
A deal on a new route for vessels through the Strait of Hormuz is "very close," Iranian Foreign Minister Abbas Araghchi has said, while warning that the reopening of the waterway depends on the U.S. meeting other conditions, including paying compensation to Iran.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 9th of August, covering the latest developments.
Iran said it was nearing a final pact with Oman defining new shipping lanes between them through the Strait of Hormuz but repeated that the U.S. must meet other conditions.
U.S. data analytics firm Palantir Technologies has reported a 93 per cent year-on-year jump in second-quarter revenue, even as the company faces continued criticism over its work with Israel's military and allegations linking its technology to the war in Gaza.a.
Rising trade across the Caspian Sea is strengthening Georgia’s role as a logistics hub and could help the country develop higher-value industries, according to the Asian Development Bank (ADB).
Ford raised its full-year earnings forecast after reporting stronger-than-expected second-quarter adjusted profit, as resilient demand for its vehicles and operational improvements helped offset tariff-related costs.
SK Hynix reported record quarterly profit on Wednesday, but its shares slumped 10 per cent after the South Korean chipmaker fell short of investor expectations built around the artificial intelligence (AI) boom.
Oil prices have fallen more than six per cent as a pause in U.S.-Iran hostilities eased fears of wider supply disruption around the Gulf.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment