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Phia startup cookie stuffing allegations

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2026-08-14 22:01 UTC → 2026-08-15 12:35 UTC · added ~~removed~~

Phia, an AI-powered shopping startup co-founded by Phoebe Gates and Sophia Kianni, is facing allegations of fraudulent ‘cookie stuffing’ practices. The company’s browser extension reportedly used a tactic to secretly open background tabs to insert affiliate tracking cookies on users’ devices, allowing the startup to claim commissions even when it did not facilitate the actual transaction. While Phia representatives initially characterized the issue as a technical bug that had been resolved, investigations citing internal Slack messages suggest leadership may have been aware of the practice for months. Reports indicate that Gates and Kianni were aware of the situation as early as December 2025, with internal communications suggesting an active effort to ensure cookies were being dropped to maximize monetization. The alleged scheme impacted numerous retail brands, including Nike, Gap, and Nordstrom. Following the removal of the feature in July, Phia’s daily revenue reportedly saw a significant ~~decline.~~ decline, dropping from approximately $80,000 to between $10,000 and $28,000. Legal experts have noted that such actions could potentially be prosecuted as federal wire fraud in the United States, a charge that carries a maximum penalty of 20 years in prison. However, experts suggest that immediate consequences are more likely to involve significant civil lawsuits and financial penalties from affected business partners and affiliates.

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