Report: Phoebe Gates and Sophia Kianni reportedly knew about Phia's 'cookie stuffing' for months
A new Bloomberg investigation claims shopping startup Phia's founders knew about improper affiliate credit practices since December, despite earlier public denials.
Shopping startup Phia, co-founded by Phoebe Gates and Sophia Kianni, is facing renewed scrutiny following a new Bloomberg investigation. It builds on an earlier report this year that detailed how Phia claimed credit and commissions for affiliate purchases it did not actually help generate — a practice known as cookie stuffing. The tactic is considered unfair because it diverts referral revenue from other affiliate marketers, and platforms typically sign contracts banning it when joining a marketplace.
When Bloomberg first reported on the issue, a Phia spokesperson said the company only learned of it after being contacted by journalists. However, the latest report, based on leaked Slack messages and sources familiar with the matter, indicates that Gates and Kianni were aware of the practice as far back as December.
Significant revenue impact
Bloomberg found that cookie stuffing accounted for a substantial share of Phia's sales, and the company's daily revenue dropped notably after the practice was stopped. Affected retailers reportedly included Nike and Nordstrom. In early July, a Phia spokesperson had described the issue as a bug, but the new report states it was actually a deliberately built feature that could be toggled on and off. Leaked Slack messages reportedly show Gates and Kianni discussing the practice with other executives and engineers.
A Phia spokesperson told Bloomberg the company disputes some of the claims but said it would "learn from this." Phia did not respond to TechCrunch's request for comment.
Phia launched last April, positioning itself as a Google Flights-like tool for shopping to help users compare prices across retailers. The company has previously faced criticism over collecting sensitive user data and tracking behavior across the web, as well as reports of significant staff departures and investor concerns about its aggressive affiliate marketing approach.
