tech
Phoebe Gates and Sophia Kianni reportedly knew Phia was 'cookie stuffing' for months
Phia, the shopping startup co-founded by Phoebe Gates and Sophia Kianni, is once again under fire for its alleged business practices.
TL;DR
- Phia is accused of 'cookie stuffing,' taking credit and commission for affiliate purchases it did not generate.
- New reporting from Bloomberg, based on leaked Slacks and sources, suggests co-founders Phoebe Gates and Sophia Kianni knew about the practice since December.
- This contradicts earlier statements from Phia that they were unaware until Bloomberg's initial investigation.
- Cookie stuffing made up a significant portion of Phia's sales, and revenue dropped substantially when the practice stopped.
- Affected retailers include Nike and Nordstrom.
- Phia previously described the issue as a 'bug,' but new reports indicate it was a 'purposefully built feature.'
- A Phia spokesperson stated the company would 'learn from this' and is reviewing transactions, issuing reversals, and hiring a head of compliance.
- Phia has also faced past controversies regarding data collection and a significant loss of employees.