Phoebe Gates and Sophia Kianni reportedly knew Phia was 'cookie stuffing' for months

Key Points:

• Phia, a shopping startup co-founded by Phoebe Gates and Sophia Kianni, is accused of engaging in cookie stuffing, a controversial affiliate marketing practice where the company took credit and commissions for sales it did not generate.
• Bloomberg's investigation revealed that Phia's leadership was aware of the cookie stuffing since December, contradicting earlier statements that the issue was only discovered after media inquiry.
• Cookie stuffing accounted for a significant portion of Phia’s sales, with daily revenue dropping notably after the practice was halted; affected retailers include major brands like Nike and Nordstrom.
• Phia initially described the cookie stuffing as a bug, but leaked internal communications show it was a deliberate feature that could be toggled on or off, with executives discussing the practice openly.
• In response, Phia has removed the problematic features, begun reversing misattributed transactions, committed to compliance improvements, and acknowledged the need to learn from the incident amid broader concerns about its business ethics and data practices.