19:53, 15 August 2026
The startup Phia, co-founded by 23-year-old Phoebe Gates, has become the center of a scandal
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Phoebe Gates, daughter of Microsoft founder Bill Gates, has been accused of using a “cookie stuffing” scheme in her multibillion-dollar startup Phia. According to media reports, such a practice in the US can carry a penalty of up to 20 years imprisonment under federal law.
Phia is a digital personal shopping assistant created by 23-year-old Phoebe Gates together with Stanford University graduate Sophia Kiani. In July, the company became embroiled in scandal after reports that the service might have been setting more web cookies than necessary, potentially allowing it to earn commissions on purchases it was not actually involved in.
The company stated that it discovered the issue “within the last 24 hours” and promised to fix it. However, a new report claims that Phoebe Gates and Sophia Kiani allegedly knew for at least seven months that Phia might have been inflating the volume of sales for which it received commissions.
Bloomberg was the first to report on the new accusations. Lawyer Ariel Givner stated that “cookie stuffing” can have serious legal consequences.
“Usually in US courts this is considered federal wire fraud. The maximum possible penalty is up to 20 years imprisonment plus fines and damages,” she wrote on social media platform X on August 11.
A Phia representative said that all features that could lead to incorrect attribution of sales sources were removed as early as July 7.
“We are reviewing every transaction, fully committed to the process, and have already started reimbursing brand partners for all cases of incorrect salesre this never happens again,” the company said
According to the Phia representative, the service continues to help users find products and offers from thousands of partner brands.
In 2025, the Phia startup raised $30 million in investments from several well-known investors, including Hailey Bieber, Kris Jenner, and Spanx founder Sara Blakely.
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