A shopping application co-founded by Phoebe Gates is under scrutiny following allegations that the company engaged in deceptive practices to claim commission on sales it did not facilitate.
Phia, a price comparison and e-commerce platform founded by Gates and Sophia Kianni, allegedly participated in a practice known as cookie stuffing, according to sources familiar with the matter who spoke to Bloomberg. The technique involves placing web tracking devices into the checkout process to fraudulently attribute sales to the application even when users did not utilize its services.
The application operates through a browser extension designed to help consumers locate discount codes during online purchases. When shoppers complete transactions using codes found through Phia, the company receives commission payments from participating retailers. However, the extension was reportedly generating these tracking cookies regardless of whether customers actually used the application's features.
The timeline of when company leadership became aware of the issue has come under question. In July, a Phia spokesperson stated the company had only learned of the misattributions within the previous 24 hours. The spokesperson said at that time that the team worked overnight to identify and resolve the problem once notified.
However, individuals with knowledge of internal company communications told Bloomberg that both Gates and Kianni had allegedly been aware of the practice since December. These sources referenced internal Slack messages discussing the issue, contradicting the public statement that suggested recent discovery.
The scale of the alleged misattribution appears substantial. According to a Slack message from a Phia data scientist dated July 7, cookie stuffing accounted for an estimated 51 percent of the sales the application claimed credit for during June.
In a statement issued Wednesday, August 12, 2026, a Phia spokesperson addressed the controversy but did not acknowledge whether the co-founders had prior knowledge of the cookie stuffing. The spokesperson confirmed that features causing misattributions were removed on July 7, more than a month ago.
The company indicated it is taking steps to address the situation. Phia representatives stated the organization is working to issue transaction reversals to affected brand partners and plans to hire a head of compliance to prevent similar incidents in the future.
Cookie stuffing represents a significant concern in affiliate marketing, as it allows companies to claim commission payments for customer purchases they did not influence. The practice undermines the integrity of affiliate programs and can result in legitimate marketing partners losing credit for sales they actually generated.
The allegations raise questions about oversight and ethical practices at the startup, particularly given the high-profile nature of its co-founder as the daughter of Microsoft founder Bill Gates. The discrepancy between the July statement and the reported December awareness could have implications for the company's relationships with retail partners and users who trusted the application to provide legitimate savings opportunities.
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Ava Hart
Ava Hart is a pop culture junkie and loves to share what's happening in Hollywood and what trends are taking the world by storm.
