Story perspectives

Phia Revenue Plunges After Disabling Auto Cookie Feature

8/13/2026

Summary

Story summary

Phia allegedly used an auto-drop cookie-stuffing feature that generated about 51% of its June merchandise value.
Slack messages say founders Phoebe Gates and Sophia Kianni knew of the practice since December and promoted it.
After disabling the feature on July 7, Phia’s daily revenue dropped from about $80,000 to $10,000-$28,000.
Impact.com suspended Phia, with the company announcing a $35.5 million seed round on May 29 that raised total capital to $43.5 million.

History

Historical Context

In 2009, Google introduced its AdSense policy banning click-fraud and cookie-stuffing, forcing affiliates globally to halt deceptive revenue tactics. The policy affected over 1.2 million publishers across the United States and Europe and saved advertisers an estimated $250 million annually. Phia’s founders Phoebe Gates and Sophia Kianni similarly exploited an auto-drop cookie-stuffing tool, inflating June sales by 51 % before its July 7 shutdown. Regulators now scrutinize affiliate platforms like Impact.com, anticipating stricter compliance that could reshape $43.5 million-raised startups’ growth trajectories in the coming years.

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Story summary

Phia allegedly used an auto-drop cookie-stuffing feature that generated about 51% of its June merchandise value.
Slack messages say founders Phoebe Gates and Sophia Kianni knew of the practice since December and promoted it.
After disabling the feature on July 7, Phia’s daily revenue dropped from about $80,000 to $10,000-$28,000.
Impact.com suspended Phia, with the company announcing a $35.5 million seed round on May 29 that raised total capital to $43.5 million.

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