Phoebe Gates Knew About Phia's 'Cookie Stuffing' for 7 Months

Phoebe Gates and Sophia Kianni, co-founders of shopping startup Phia, allegedly knew about the company's 'cookie stuffing' practice for at least seven months, contradicting the company's initial statement that they were only aware of the issue for 24 hours.

The practice, which involves taking credit for sales not driven by the company, had significant financial consequences and affected retailers such as Nike and Nordstrom. Phia's browser extension was designed to report that the startup drove a sale even when its product was never used, resulting in increased commissions for Phia.

According to a Phia data scientist, 'cookie stuffing' accounted for around 51% of the sales the app was taking credit for during the month of June. This practice led to a significant increase in revenue for Phia, with the company's average daily revenue reaching roughly $80,000. However, after Phia disabled the 'cookie stuffing' features on July 7, its average daily revenue fell to between $10,000 and $28,000.

Phoebe Gates raised concerns about the 'cookie stuffing' practice in a December 18 Slack message, indicating that she and Kianni were aware of the issue for an extended period. The affected retailers, including Nike, Gap, and Nordstrom, were likely impacted by the practice, which can be seen as taking referral revenue away from other affiliate marketers.

## What happens next Phia has since disabled the 'cookie stuffing' features and is working on issuing transaction reversals to brand partners. The company is also hiring a head of compliance to prevent similar issues from happening in the future. However, the allegations of Gates and Kianni's knowledge of the practice for seven months may have further consequences for the company.

## Why it matters The 'cookie stuffing' practice can have significant financial consequences for retailers and other affiliate marketers. The fact that Phia's co-founders allegedly knew about the practice for an extended period raises questions about the company's business practices and transparency. As a shopping startup, Phia's reputation and relationships with retailers and partners may be impacted by these allegations.