Observed Signal · Aug 11, 2026 · Investigation (Journalistic) · Source: techcrunch · Impact: 3/5 · Sentiment: Negative
Phia Founders Knew of Cookie Stuffing, Bloomberg Reports
TechCrunch reports new Bloomberg reporting that Phia — the shopping startup co-founded by Phoebe Gates and Sophia Kianni — engaged in 'cookie stuffing' (taking affiliate credit for purchases it did not drive). Bloomberg's reporting, based on leaked Slack messages and sources, says the co-founders were aware of the practice as far back as December. Phia says it removed the offending features on July 7, is reviewing transactions, issuing reversals to brand partners, and hiring a head of compliance. Bloomberg and other outlets also found cookie stuffing composed a sizable portion of Phia's sales and that affected retailers include Nike and Nordstrom. Earlier reporting flagged staff losses and data-collection concerns at Phia.
Allegations of deliberate affiliate misattribution undermine trust in affiliate networks and retail partnerships, can lead to legal and commercial repercussions for advertisers and retailers, and may influence investor and brand scrutiny of performance-focused shopping startups.
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Key Takeaways & Evidence Grounding
- Phia is accused of 'cookie stuffing' — taking affiliate credit and commission for purchases it did not help generate.
- Bloomberg reports co-founders Phoebe Gates and Sophia Kianni knew about the cookie-stuffing practices as far back as December, based on leaked Slack messages and sources.
- Phia says features causing misattributions were removed on July 7, it is reviewing transactions, issuing transaction reversals to brand partners, and hiring a head of compliance.
- Bloomberg found cookie stuffing made up a substantial portion of Phia's sales and that daily revenue dropped after the practice stopped; affected retailers include Nike and Nordstrom.
- Phia launched in April as a shopping startup positioned like a 'Google Flights'-style shopping tool.
Connected Companies & Entities
5 Entities mapped“But new reporting by Bloomberg shows that Gates and Kianni knew their startup was cookie stuffing as far back as December, based on leaked S...”
“When reached by TechCrunch, an unnamed spokesperson for Phia said in a statement: “Any features causing misattributions were immediately rem...”
“The outlet also gained insight into the affected retailers, including Nike and Nordstrom....”
“The outlet also gained insight into the affected retailers, including Nike and Nordstrom....”
“A few days after Bloomberg’s investigation in July, Puck also dug around and found that Phia lost almost half its full-time employees since ...”
Ontology Mapping & Concepts
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Phia Accused of 'Cookie Stuffing' in Affiliate Program
Phia, a shopping browser extension cofounded by Phoebe Gates and Sophia Kianni and launched in 2025, has been accused by independent researchers and media — including Bloomberg (July 9, 2026), Ben Edelman and Capital One Shopping — of 'cookie‑stuffing' and affiliate fraud: opening background tabs, generating fake clicks and inserting its affiliate codes at checkout, which can override publishers' links and claim commissions for sales it did not drive. Affiliate platform Impact.com suspended Phia and Awin is reviewing the allegations. Phia, which has raised $43.5 million and is reportedly valued at $185 million, says it identified, mitigated and resolved the issue, stopped the contested behavior and logged URLs only in aggregate. The reporting has reignited broader legal controversy over similar practices in the ad tech and marketing industry.
Phia Allegedly Used Forced Clicks to Steal Commissions
An Adweek article reports allegations that Phia’s iOS Safari extension generated affiliate transactions without legitimate referrals, potentially creating commissions that should not have existed. Testing cited in the article (by Capital One Shopping and Edelman) found the extension allegedly opens background tabs and fires affiliate-tracking links without explicit user action. Bloomberg reported Phia may have taken more than $10 million from merchants; TBPN estimated about $12 million. The piece compares the alleged behavior to historical forced-click affiliate schemes tied to eBay affiliates Shawn Hogan and Brian Dunning, which resulted in wire-fraud charges. Phia has not been criminally charged; the article warns the conduct—if true—directly harms merchants and undermines trust in affiliate and commerce ecosystems.
B2B Advertisers Must Embrace the Weekend
Bloomberg Media's David Bradford argues that B2B advertisers are missing opportunities by confining their campaigns to the working week. In a world where work and life blur, decision-makers are always 'on' but in different mindsets, especially on weekends. Bradford highlights Bloomberg's Weekend proposition, which offers in-depth, reflective content that attracts a growing audience of leaders. He cites YouGov data showing Lenovo's successful B2B activation during the World Cup, demonstrating that broader placements can work. He encourages advertisers to follow audiences across premium environments like podcasts, LinkedIn, and OOH, reaching them when they have more space to think. The article is an opinion piece advocating for a shift in B2B media planning to include weekend placements as a prime-time opportunity.
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