Phia, the High-Profile Startup Founded by Bill Gates’ Daughter Phoebe Gates, Accused of “Cookie Stuffing” Affiliate Fraud

Phoebe Gates, daughter of Microsoft co-founder Bill Gates and Melinda French Gates, and her Stanford friend Sophia Kianni launched Phia in 2025 as an AI-powered shopping assistant.

The browser extension (and related app) promises to help users find the best prices, promo codes, and secondhand alternatives across tens or hundreds of thousands of retailers — essentially acting as a “Google Flights for fashion.”

The startup quickly gained traction. It raised approximately $43.5 million in funding (including an $8 million seed and a larger Series A), reaching a valuation around $185 million. High-profile investors included Kleiner Perkins, Khosla Ventures, Sheryl Sandberg, Khloé Kardashian, Kris Jenner, Sara Blakely, Hailey Bieber, and others.

Phoebe Gates appeared on the Forbes 30 Under 30 list for Retail & Ecommerce in 2026. Bill Gates himself reportedly did not invest in the company.

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The Allegations: Cookie Stuffing and Forced Attribution

In July 2026, a Bloomberg investigation (later covered extensively by TechCrunch, Business of Fashion, and others) accused Phia of cookie stuffing — a controversial practice in affiliate marketing where a company secretly claims commission for a sale it didn’t actually drive.

Here’s how it allegedly worked, according to reporting and independent testing:

• Phia’s browser extension would monitor shopping activity.
• During the checkout process on retail sites (even when users arrived directly or via another affiliate link), Phia reportedly opened a hidden background tab.
• It then inserted its own affiliate tracking cookie or referral code.
• This caused the retailer’s system (and affiliate networks) to attribute the sale — and the associated commission — to Phia, even if Phia played no role in bringing the customer.

The practice potentially allowed Phia to earn revenue from purchases it didn’t influence, sometimes overriding legitimate referrals from other publishers or direct visits.

Independent tests by Bloomberg, researcher Ben Edelman, and Capital One Shopping reportedly confirmed the behavior across dozens of major retailers, including Walmart, Nike, and Zara.

An anonymous Phia employee reportedly tipped off Bloomberg about the mechanism.

Bloomberg conducted its own testing, then shared findings with outside experts who verified the methodology or reproduced the results.

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Phia’s Response

Bloomberg contacted Phia for comment. A representative stated:

“Over the last 24 hours, we became aware that in a recent release our code was causing incorrect attribution for some users. As soon as we were notified, our team worked through the night to identify and fix the issue.”

Phia claimed the problem was unintentional and has since been resolved. The company was reportedly suspended from at least one major affiliate platform (Impact.com) following the revelations.

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Broader Context: Affiliate Fraud Is Serious Business

Cookie stuffing and similar tactics are explicitly prohibited by most affiliate networks and retailers.

They distort performance metrics, unfairly siphon commissions, and can damage trust in the entire ecosystem.

Past cases show real consequences. In 2014, affiliate marketer Brian Dunning was sentenced to 15 months in prison for a cookie-stuffing scheme involving eBay that allegedly generated around $35 million in fraudulent commissions.

While Phia’s situation appears smaller in scale and the company says it has fixed the issue, the allegations have sparked online debate — including accusations of “nepo baby” advantages and questions about due diligence by investors.

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What’s Next?

Phia positioned itself as a helpful tool for smarter, more transparent shopping in a trillion-dollar fashion and retail space. The controversy highlights ongoing challenges in affiliate marketing, where technical loopholes can blur the line between legitimate optimization and manipulation.

As of now, Phia maintains that the problematic code has been corrected and that the behavior was not intentional. Bloomberg and independent testers, however, documented the activity prior to the fix.

Whether this remains a one-off technical glitch or leads to further scrutiny (legal, regulatory, or from partners) remains to be seen. Investors and users will likely be watching closely.

And yes — many are wondering what Bill Gates might have to say to his daughter about the situation. The internet, at least, is having a field day with the “what did dad say?” memes. 🤣

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Sources: Bloomberg investigation (July 9, 2026), TechCrunch, Business of Fashion, Inc., Forbes profiles, and related reporting. Phia’s public statements via media responses.

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