Internal Slack messages reviewed by Bloomberg show that Phoebe Gates and Phia co-founder Sophia Kianni knew as early as December last year that the shopping comparison startup had been using cookie stuffing to collect affiliate marketing commissions. Corporate lawyer Ariel Givner said on X that the practice is typically treated as federal wire fraud in U.S. courts and could carry a maximum sentence of up to 20 years, along with fines and restitution.
Slack messages conflict with earlier explanation from the company
Bloomberg had already reported on July 9 that Phia’s browser extension would open background tabs during checkout and insert its own cookies, in some cases replacing legitimate referral records so the company could claim commissions on sales it did not generate.
After that report, a Phia spokesperson attributed the issue to a technical error and said the team fixed it within 24 hours of being notified by Bloomberg. The newly disclosed Slack messages, however, point to a different picture.
According to the report, Gates wrote in a Slack channel on Dec. 18 last year: 「能否确认一下，带优惠券的自动弹出 Cookie 塞入功能，是不是所有网站都上线了，好确保我们在所有 GMV（商品交易总额）上都有变现？」 In another exchange, an engineer warned that automatically stuffing cookies could 「违反合规要求」. Kianni replied: 「只要能让这些 Cookie 继续塞进去，做什么都好，太感谢了。」
How cookie stuffing works
Bloomberg described cookie stuffing as a deceptive tactic in affiliate marketing. Under standard affiliate rules, commissions are paid only when a user actually clicks a referral link and completes a qualifying purchase. Cookie stuffing bypasses that process by placing tracking cookies in a user’s browser without a genuine referral event, allowing the affiliate to claim credit for sales that were not driven by its own traffic.
Affiliate marketing expert Ben Edelman told Bloomberg: 「联盟行销最基本的规则是，佣金只能在用户真正点击连结后才能核发，不允许假点击、模拟点击或想象出来的点击，只有真实点击才算数。」
Lawyer points to wire fraud exposure
Givner wrote on X: Again, this is called cookie stuffing! On a simple level, it’s automatically injecting affiliate tracking cookies to claim commissions on sales you didn’t drive. It’s typically treated as federal wire fraud in US courts. There’s a possibility of a max penalty of up to 20 years…
BlockTempo said that warning means Gates could face a maximum penalty of 20 years in prison, plus fines and restitution if prosecutors were to pursue the matter successfully. At present, though, no prosecutors have formally charged either Phoebe Gates or Sophia Kianni. Bloomberg’s reporting remains based on internal evidence and outside legal interpretation.
Revenue fell after the feature was disabled
Phia is described as a personal shopping assistant browser extension that helps users find discounts on clothing and fashion accessories. When users complete purchases through the tool, Phia can collect commissions from retailers.
Charts obtained by Bloomberg showed that after the cookie stuffing feature was turned off, Phia’s average daily revenue dropped from about $80,000 to a range of $10,000 to $28,000. The report also said the tactic accounted for 51% of all sales attributed to Phia in June.
Some affiliate partners also ended their relationships with Phia after Bloomberg’s earlier report last month, according to the article.
Earlier cases show the legal history of the tactic
Bloomberg noted that this is not the first case involving cookie stuffing. In 2008, eBay sued top affiliate marketer and tech entrepreneur Shawn Hogan over a cookie stuffing scheme that allegedly defrauded eBay and other affiliates. Hogan was accused of obtaining about $28 million in marketing payments and was sentenced in 2014 to five months in federal prison.
The Phia matter is still at the stage of media reporting, internal records and legal commentary, but the Slack messages disclosed by Bloomberg have intensified scrutiny of the startup’s compliance and legal exposure.