Phia, the shopping startup co-founded by Phoebe Gates and Sophia Kianni, is once again under fire for its alleged business practices. The latest issue stems from earlier this year when Bloomberg published an investigation that mapped out how Phia was taking credit and commission for affiliate purchases it did not help to generate, known as cookie stuffing.
It’s a controversial practice that can get startups sued, mainly because it’s seen as taking referral revenue away from other affiliate marketers. Usually, when affiliate platforms like Phia sign on to work in a marketplace, they sign a contract stating that cookie stuffing is banned because it’s unfair.