● Covered by 1 source · 1 reportLow impact1 negative
Phia Co-Founders Knew of 'Cookie Stuffing' Practice Months Before Public Disclosure
Key points
- Gates and Kianni knew about cookie stuffing since December.
- Cookie stuffing was a built-in feature, not a bug.
- Practice generated a significant portion of Phia's sales.
- Phia will reverse transactions and hire a compliance head.
Allegations of Prior Knowledge
Bloomberg's latest reporting suggests that Phoebe Gates and Sophia Kianni, co-founders of the shopping startup Phia, were aware of the company's "cookie stuffing" activities since December. This contradicts an earlier statement from a Phia spokesperson who claimed the company was only informed of the issue when Bloomberg initiated its investigation.
Nature of the Practice
Cookie stuffing is a controversial practice where a company takes credit and commission for affiliate purchases it did not facilitate. Leaked Slack messages reportedly show Gates and Kianni discussing these practices with other executives and engineers. The new report also indicates that what Phia previously called a "bug" was, in fact, a purposefully built feature that could be activated or deactivated.
Impact on Revenue and Retailers
The practice of cookie stuffing constituted a substantial portion of Phia's sales. After the company ceased the practice, it experienced a noticeable decline in its daily revenue. Retailers affected by this practice reportedly include Nike and Nordstrom.
Company Response
In response to the new allegations, a Phia spokesperson stated that the company would "learn from this" and rebuffed some claims. Phia also confirmed that features causing misattributions were removed on July 7, and the company is reviewing all transactions to issue reversals to brand partners. Phia plans to hire a head of compliance to prevent future occurrences.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
New reports indicate that Phia co-founders Phoebe Gates and Sophia Kianni were aware of the startup's "cookie stuffing" practices as early as December, contradicting previous statements that the company learned of the issue only when contacted by Bloomberg. This practice, which involves taking commission for affiliate purchases not generated by the platform, led to a significant portion of Phia's sales and a drop in revenue once stopped, impacting retailers like Nike and Nordstrom.