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Phia's Cookie Stuffing Scandal Exposes a Diligence Blind Spot

Business July 12, 2026 06:36 PM
Phia's Cookie Stuffing Scandal Exposes a Diligence Blind Spot

Phia's Cookie Stuffing Scandal Exposes a Diligence Blind Spot

A Bloomberg investigation found that Phia, the AI shopping app founded by Phoebe Gates and Sophia Kianni, used a browser extension to quietly override other publishers' affiliate links and claim commissions it didn't earn. Impact.com suspended the startup's account, and the episode raises hard questions about how $43.5 million in venture funding, backed by a roster of celebrity investors, missed one of the oldest tricks in ad tech.