Phoebe Gates Startup Phia Accused of Cookie Stuffing Fraud

Phoebe Gates, the 23-year-old daughter of billionaire Bill Gates, and her startup Phia are facing serious allegations of engaging in a deceptive online practice known as cookie stuffing, which could carry federal penalties. The digital personal shopping assistant, which Gates co-founded with Sophia Kianni, is accused of knowingly using software features to take undue credit for online sales and earn commissions it did not legitimately generate.

According to a report published by Bloomberg on August 12, 2026, internal communications and sources indicate that Gates and Kianni were aware of the issue for at least seven months before publicly addressing it. The practice, which involves dropping tracking cookies without a user's direct engagement to claim affiliate revenue, is considered a form of wire fraud and can result in fines, restitution, and up to 20 years in prison. Attorney Ariel Givner highlighted these potential consequences in a public post.

The controversy centers on a feature within Phia's browser extension that could automatically drop affiliate cookies during the checkout process, even when a customer did not actively use a Phia coupon. This feature, reportedly...