Phoebe Gates and Sophia Kianni reportedly knew Phia was ‘cookie stuffing’ for months
New reporting reveals that the shopping startup Phia, co-founded by Phoebe Gates and Sophia Kianni, knowingly engaged in 'cookie stuffing' to generate affiliate revenue. Leaked internal communications contradict earlier claims that the practice was an accidental bug.
Why it matters
The controversy highlights ethical concerns in the affiliate marketing industry and the reputational risks for startups founded by high-profile individuals.
Phia, the shopping startup co-founded by Phoebe Gates and Sophia Kianni, is once again under fire for its alleged business practices. The latest issue stems from earlier this year when Bloomberg published an investigation that mapped out how Phia was taking credit and commission for affiliate purchases it did not help to generate, known as cookie stuffing.
It’s a controversial practice that can get startups sued, mainly because it’s seen as taking referral revenue away from other affiliate marketers. Usually, when affiliate platforms like Phia sign on to work in a marketplace, they sign a contract stating that cookie stuffing is banned because it’s unfair.
When Bloomberg first reported on Phia’s cookie stuffing, a Phia spokesperson told the publication that the company was only made aware of the issue when Bloomberg reached out to them.
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