Phia, a shopping browser extension that helps people find deals across the web, is in hot water.
The buzzy startup, cofounded by Phoebe Gates—daughter of tech billionaire Bill Gates—and Sophia Kianni analyzes shopping prices and recommends discount codes for shoppers across the web. On July 9, Bloomberg reported that the app violated standard practices for affiliate marketing by taking credit for sales it did not drive.
Typically, affiliate marketing firms only earn commission if someone clicks one of their own affiliate links and makes a purchase. Instead, Phia reportedly drove fake clicks, linking retailers with its affiliate codes in the background that allowed it to receive revenue regardless of whether someone clicked on a Phia link.
