Phia Leaders Knew About Cookie Stuffing for Months

Shopping startup Phia, co-founded by Phoebe Gates and Sophia Kianni, is once again facing accusations regarding its business practices. Earlier this year, an investigation revealed Phia engaged in "cookie stuffing," a controversial method of claiming commission for affiliate purchases not directly generated through their efforts. This practice is typically banned by contracts as it unfairly diverts revenue from other affiliate marketers.

New reporting indicates that Phia's leadership was aware of the cookie stuffing as far back as December, contrary to earlier statements. Leaked communications and sources familiar with the matter suggest the practice was a significant contributor to Phia's sales, with a noticeable drop in revenue occurring after it was discontinued. Several major retailers, including Nike and Nordstrom, were reportedly affected.

Previously described as a "bug," Phia’s spokesperson has now acknowledged the company will "learn from this," while disputing some new claims. Phia launched with the aim of creating a shopping platform similar to Google Flights, helping users find the best prices across retailers. However, the company has also faced employee departures and questions from brands regarding their presence on the app, alongside past controversies over data collection.