Months after Bloomberg's investigation exposed Phia's questionable affiliate tactics, fresh scrutiny has landed on the startup's leadership. Phoebe Gates and Sophia Kianni reportedly knew about the practice long before it became public, raising new questions about accountability at the shopping platform. Main Developments Bloomberg's earlier report detailed how Phia allegedly took credit and commission for affiliate purchases it didn't help generate — a practice known as cookie stuffing. New information suggests the co-founders were aware of this for months, contradicting any claims of ignorance. Cookie stuffing is widely condemned because it diverts referral revenue away from other affiliate marketers who actually drove the sales. Most affiliate marketplaces explicitly ban the practice in their contracts, making its use a potential legal liability for startups like Phia. Read also: Accel closes $550M India fund in weeks, bets big on AI wave Background Phia, co-founded by Gates and Kianni, has faced criticism before for its business practices, but this is the first time the founders' personal knowledge has been called into question. The startup operates in the competitive affiliate shopping space, where trust and transparency are crucial for partnerships. Why It Matters If proven, the founders' awareness could expose Phia to lawsuits from affiliate partners and damage its reputation among consumers and investors. For a startup built on influencer credibility, allegations of deceptive practices strike at the core of its brand. What's Next Bloomberg's investigation has already triggered public backlash, and the new allegations may prompt further scrutiny from regulators or partner marketplaces. Whether Phia responds with policy changes or legal action remains an open question as the story develops.