Source: Fortune
Summary
Phoebe Gates, co-founder of AI shopping extension Phia, is under scrutiny after Bloomberg‘s investigation found that the company knew for seven months that their app was taking credit for sales it never drove. The practice, called “cookie stuffing,” had Phia swapping its own referral code over legitimate ones on checkout pages. Phia has since killed the feature, reversed bad transactions, and is hiring a compliance chief.
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The numbers tell one story.
Phia’s “cookie stuffing” practice sounds like a familiar tale of tech startups pushing boundaries. Gates and co-founder Sophia Kianni knew about the issue for seven months, but only acted after Bloomberg‘s investigation. The startup’s future remains uncertain. Phia’s attempt to reverse bad transactions and hire a compliance chief may not be enough to regain trust. The situation is a reminder that even AI-powered companies can fall victim to old-school tactics.
Author: Evan Null
