Phoebe Gates faces scrutiny over Phia 'cookie stuffing' allegations

Phoebe Gates, daughter of Bill Gates, and co-founder Sophia Kianni are facing scrutiny over allegations that their shopping startup, Phia, engaged in 'cookie stuffing.' This practice involves using a browser extension to automatically place affiliate tracking cookies on users' devices, allowing the company to claim commissions on sales even when the service did not facilitate the transaction.

While Phia initially attributed the issue to a recent technical bug, leaked internal Slack messages suggest that Gates and Kianni were aware of the practice for months. Reports indicate that in December, Gates requested confirmation that the automatic cookie placement was working to ensure the company was 'monetizing on all GMV.' Kianni reportedly urged engineers to 'keep these cookies dropping' at all costs.

The alleged scheme impacted major retailers such as Nike, Gap, and Nordstrom. Following the removal of the feature in July, Phia’s daily revenue reportedly dropped from approximately $80,000 to between $10,000 and $28,000. Legal experts note that such actions could be prosecuted as federal wire fraud in the United States, which carries a maximum penalty of 20 years in prison. Gates has not been charged with any crime.