Phoebe Gates, daughter of Microsoft co-founder Bill Gates, is facing growing scrutiny over Phia, the shopping startup she co-founded with Sophia Kianni.
The controversy centers on allegations that Phia’s browser extension used a practice known as “cookie stuffing,” which can place affiliate tracking codes on a user’s device without the user clicking an affiliate link. This could potentially allow a company to claim commissions for purchases it did not actually generate.
Independent affiliate marketing researcher Ben Edelman reported the alleged issue in July. Phia subsequently said the disputed tracking behavior resulted from a recent software update and removed the features on July 7. The company also said it would review transactions, correct any wrongly attributed commissions and strengthen compliance procedures.
However, reports published on August 11 cited internal Slack messages that allegedly indicate Gates and Kianni were aware of the tracking feature as early as December 2025. If accurate, the messages could raise questions about Phia’s earlier explanation that the issue was caused by a recent technical problem.
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The controversy has also triggered online speculation about potential criminal liability, including wire fraud. However, Phoebe Gates has not been charged with a crime, and there is currently no public indication that federal authorities are investigating her.
Legal experts note that proving criminal fraud would require evidence of an intentional scheme to deceive, making such allegations significantly more difficult to establish than simply demonstrating questionable or improper software practices.
The controversy has put increased attention on Phia’s affiliate-marketing model and the responsibilities of startups handling digital tracking technology.
