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Phoebe Gates' Startup Phia Knew About Cookie Stuffing for Months, Report Says
New reporting suggests Phia co-founders Phoebe Gates and Sophia Kianni were aware of the shopping startup's cookie stuffing practice as early as December, contradicting earlier claims.
Leaked Slack messages and unnamed sources cited in a new Bloomberg report indicate that Phia's co-founders knew about the company's use of cookie stuffing months before the practice became public. The startup, launched by Phoebe Gates and Sophia Kianni, allegedly took credit and commission for affiliate purchases it did not help generate.
Cookie stuffing is a controversial affiliate marketing technique that allows a platform to claim referral fees for sales it didn't actually drive. The practice is typically banned under contracts in affiliate marketplaces because it unfairly diverts revenue from other marketers.
When Bloomberg first investigated Phia's cookie stuffing earlier this year, a company spokesperson said Phia only learned of the issue when Bloomberg reached out. However, the latest reporting reveals that Gates and Kianni reportedly knew about the practice as far back as December, based on leaked internal communications.
The new investigation also found that cookie stuffing accounted for a substantial portion of Phia's sales. After the company stopped the practice, it experienced a notable drop in daily revenue. The report identified affected retailers, including Nike and Nordstrom.