Phoebe Gates, the 23-year-old daughter of Microsoft co-founder Bill Gates, is facing scrutiny over allegations involving Phia, the AI-powered shopping startup she co-founded with Sophia Kianni. The company has been accused of using a practice known as “cookie stuffing” to claim affiliate commissions on purchases it may not have generated.
The controversy centers on Phia’s browser extension, which helps shoppers compare prices, find products and apply discount codes. Investigations reported that the extension could place or refresh affiliate tracking cookies and potentially override referrals from other sources, allowing Phia to receive credit for sales it did not directly generate.
What is cookie stuffing?
Cookie stuffing is an affiliate-marketing practice in which tracking cookies are placed on a user’s browser without a legitimate qualifying referral or interaction. The cookies can then make it appear that an affiliate was responsible for a purchase, potentially allowing it to collect a commission.
In Phia’s case, Bloomberg’s investigation and independent testing cited by technology media found instances in which the extension could open a background tab and insert Phia’s affiliate tracking code while a shopper was purchasing from an online retailer.
Phia has said the issue resulted from a technical problem and that the relevant behavior was addressed after it was identified. More recent reports, however, have cited internal communications and software records that allegedly indicate the company was aware of some of the features before the issue was publicly attributed to a bug.
Is Phoebe Gates facing 20 years in prison?
Reports have highlighted that certain forms of U.S. federal wire fraud can carry a maximum sentence of up to 20 years. However, that maximum penalty does not mean Gates has been sentenced to, or is currently facing, 20 years in prison.
As of the latest reports, Gates and Phia have not been charged with a crime. Legal experts cited in coverage have said that criminal liability would depend on factors including evidence of knowing and intentional wrongdoing. Civil claims and financial disputes remain possible consequences of the controversy.
Phia’s business impact
Phia was launched in 2025 and has raised more than $40 million from investors. The startup has attracted attention from prominent investors and celebrities while building a shopping platform designed to help consumers find lower prices, discounts and second-hand alternatives.
The company’s affiliate-related controversy has already had business consequences. Phia was suspended by Impact.com, a major affiliate and influencer marketing platform, following the allegations. Reports have also said the company’s revenue fell sharply after the disputed features were disabled.
Phia has said it is reviewing affected transactions and taking steps to reverse improperly attributed sales. The allegations remain a subject of scrutiny, and the available reporting does not establish that Phoebe Gates has been criminally convicted of wrongdoing.
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