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The practice is known as “cookie stuffing” or attribution fraud. In plain terms, Phia could receive credit, and potentially a commission, for a purchase even when the shopper had not discovered the product through Phia or interacted with one of its recommendations.Affiliate marketing normally works by assigning a unique link to a publisher, creator, or shopping platform. When a shopper follows that link and completes a purchase, the retailer can identify which affiliate generated the sale and pay it a commission.According to Bloomberg, Phia’s extension sometimes inserted itself at the end of that process. A shopper could arrive at a retailer independently or through another publisher, only for Phia to replace the original referral code as the shopper approached checkout.In one test described in the investigation, Bloomberg followed a Nordstrom link from a Wirecutter article about Fourth of July deals. Phia allegedly opened another tab in the background during checkout and replaced Wirecutter’s referral information with its own. The extension reportedly behaved similarly when Bloomberg reached a shopping site through a paid advertisement from another publisher.Impact.com suspended the company after being alerted to the behavior, and the platform told Bloomberg that activity within the extension appeared to be inconsistent with its policies and that it was reviewing potentially affected transactions. Social media immediately was abuzz with conversation, with some people upset while some defend the 23-year-old co-founder.
