Phia co-founders Phoebe Gates and Sophia Kianni were aware their app was wrongfully claiming affiliate sales credits months before the scandal became public knowledge.
Internal messages shared with Bloomberg reveal the co-founders knew about the issue as far back as December 2025, well before any public disclosure was made.
The app was improperly taking credit and commission on affiliate purchases it did not actually help drive, according to the internal communications reviewed by Bloomberg.
When news of the scandal first broke on July 8, Gates and Kianni publicly claimed they had only just been made aware of the situation, contradicting the internal messages.
The revelation raises serious questions about the conduct of the app’s leadership and what steps, if any, were taken between December 2025 and the public exposure of the issue.
The gap between when the co-founders say they learned of the problem and when the internal messages suggest they actually knew is central to the growing controversy surrounding the company.
Affiliate marketing fraud of this kind can have significant consequences for brands and content creators who rely on accurate attribution to measure the performance of their campaigns.
Publishers and retailers who partner with affiliate apps typically pay commission based on the understanding that the platform genuinely drove a consumer to make a purchase.
If an app claims credit for sales it did not influence, partner brands and creators may have been paying out commissions on transactions they would have made regardless of the platform’s involvement.
The Bloomberg report has drawn significant attention to Phia and the broader question of transparency and accountability within affiliate marketing technology platforms.
In a separate story making waves in the fashion world, Rihanna appears on the cover of Elle’s September 2026 issue, photographed by Inez and Vinoodh and styled by Jahleel Weaver.
She wears Jonathan Anderson’s Dior across the cover and throughout the accompanying photoshoot, though she did not sit for an interview as part of the feature.
The cover story was written by Roxane Gay, addressing Rihanna’s lasting fashion influence, her Dior J’adore ambassadorship, and the enduring loyalty of her global fanbase.