Phia founders allegedly knew about cookie-stuffing scheme for months

A fresh one outlet's report, based on leaked Slack conversations, indicates that Phia’s co-founders Phoebe Gates and Sophia Kianni knew the shopping platform was engaging in cookie stuffing from at least December. The technique, which improperly claims credit for affiliate purchases, had become a significant portion of Phia’s sales and its cessation led to a noticeable drop in daily revenue. Earlier this year Bloomberg had first reported the practice, and Phia’s spokesperson had described it as a bug, but the new evidence suggests it was an intentional, toggleable feature.

Retailers including Nike and Nordstrom were listed as impacted parties. Phia has rejected some of Bloomberg’s allegations and pledged to learn from the situation, while the company has not responded to a request for comment from one outlet. The controversy adds to prior criticism of Phia’s aggressive affiliate tactics and past data-privacy concerns.