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

Phoebe Gates and Sophia Kianni, the co-founders of the shopping startup Phia, were reportedly aware of the company's "cookie stuffing" practice for months, according to recent reporting by Bloomberg. Cookie stuffing refers to the illegal practice of taking credit and commission for affiliate purchases that the startup did not help generate.

This practice is considered unfair and can lead to lawsuits, as it removes referral revenue from other affiliate marketers. The issue first came to light when Bloomberg published an investigation in July, revealing that Phia was using cookie stuffing to boost its sales. At the time, a Phia spokesperson claimed that the company only learned about the issue after being contacted by Bloomberg.

However, new reporting shows that Gates and Kianni were fully aware of the practice as early as December, based on leaked Slack messages and sources familiar with the matter. The leaked messages also show that the startup executives and engineers were discussing the cookie stuffing practices openly. Phia's spokesperson has since stated that the company rebuffs some of the publication's claims, but is committed to learning from the situation.

The startup, which launched in April with the goal of being a more effective Google Flights-like site for shopping, has faced scrutiny over its aggressive use of affiliate marketing and the loss of nearly half of its full-time employees since the beginning of the year. Additionally, the startup has been accused of collecting sensitive user data without brands' knowledge.