Updated
Updated · The Cut · Jul 10
Phia Fixes Affiliate Code Issue After $43 Million Startup Misattributed Sales
Updated
Updated · The Cut · Jul 10

Phia Fixes Affiliate Code Issue After $43 Million Startup Misattributed Sales

3 articles · Updated · The Cut · Jul 10

Summary

  • Within 24 hours, Phia said it identified, mitigated and resolved a codebase issue that caused some user purchases to be wrongly credited to the startup.
  • Bloomberg reported the browser extension opened a background tab at checkout and inserted Phia’s affiliate code, letting it collect commission on sales it did not influence.
  • Phia said the problem came from a recent release affecting a subset of users and added that it maintains compliance and undergoes regular audits.
  • The issue hits a 2025-founded AI shopping startup co-founded by Phoebe Gates that has raised $43 million from investors including Karlie Kloss, Kim Kardashian and Hailey Bieber.

Insights

Was Phia's $185M 'AI' startup built on a software bug or intentional fraud?
After being suspended for hijacking sales, can Phoebe Gates' AI startup regain industry trust?
Did the 'AI shopping assistant' label help a simple ad-tech fraud raise $43 million?