New reports indicate that Phia co-founders Phoebe Gates and Sophia Kianni were aware of controversial affiliate marketing practices at their shopping startup months before public exposure. Leaked internal communications suggest that the leadership discussed the use of cookie stuffing, contrary to initial claims that the issue was merely an unforeseen software bug.
Cookie stuffing involves intercepting referral commissions for purchases that the platform did not actually help generate, effectively siphoning revenue from other marketers. The latest investigative findings reveal that this feature was intentionally built into the system and accounted for a significant portion of the startup’s daily sales.
Following the revelations and subsequent fallout—including workforce reductions and brand scrutiny—Phia’s representatives stated that the problematic features have been removed. The company has begun issuing transaction reversals to affected brand partners and plans to hire a head of compliance to prevent future issues.
- Internal messages suggest Phia executives knew about cookie stuffing for months.
- The controversial practice was reportedly an intentional feature rather than a bug.
- Phia has removed the feature and started issuing refunds to partner brands.
- The startup has faced employee departures and investor scrutiny amid the controversy.
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