Bloomberg says Phia co-founders knew of cookie stuffing months before disclosure

Phia, the shopping startup co-founded by Phoebe Gates and Sophia Kianni, used multiple features that automatically dropped affiliate tracking cookies and claimed commissions on sales it did not drive, with internal Slack messages, a dashboard screenshot and historical source code reviewed by Bloomberg indicating the practice was known internally for months before the company said on July 8 it had become aware of the issue only "within the last 24 hours." The report said a feature called "enable coupon auto drop" was switched on from Dec. 10 until July 7, and another "passive trigger" mechanism operated from October to July, allowing Phia to set cookies without intentional user interaction on retailer sites including Nike, Gap, Nordstrom and Etsy. Bloomberg said the tactics accounted for a significant share of Phia's attributed sales: average daily revenue fell from about $80,000 to between $10,000 and $28,000 after the features were disabled, while a July 7 internal estimate put cookie stuffing at about 51% of the merchandise value Phia claimed in June. Phia said any misattribution features were removed on July 7, that it is reversing affected transactions and hiring a head of compliance, while disputing parts of Bloomberg's analysis and saying the revenue drop also reflected the suspension of most monetization efforts.

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