Bill Gates' Daughter Accused of 'Cookie Stuffing' Her Multibillion-Dollar Startup — Which Carries a Maximum Penalty of 20 Years in Federal Prison

Investigative reports claim that Phia, an AI-powered shopping app co-founded by Bill Gates’ daughter Phoebe Gates deliberately engaged in an illicit affiliate marketing practice known as "cookie stuffing.”

Legal experts note that while the 23-year-old has not been criminally charged, deliberate cookie stuffing is typically prosecuted under federal wire fraud statutes, which carry a statutory maximum penalty of 20 years in prison.

A Bloomberg investigation reveals that internal Slack logs show Phoebe and her co-founder Sophia Kianni pushed for and were aware of the cookie-stuffing features as early as December 2025, contradicting the startup's previous claims that the misattributions were simply a recent "software bug.”

Phia operates as a browser extension designed to find discount codes. The app reportedly injected or refreshed affiliate tracking cookies automatically on users' browsers — even if the shoppers never clicked a Phia coupon or used the app.

This allegedly allowed Phia to falsely claim credit and pocket commissions for sales it did not generate.

Internal Slack messages from December 2025 show Phoebe explicitly asking developers to confirm if the "auto pop for cookie drop" was live across all sites to ensure they were "monetizing on all GMV" (gross merchandise volume).

According to leaked charts, cookie stuffing accounted for roughly 51 percent of all sales Phia claimed credit for in June 2026.

Following the exposure, Phia's average daily revenue plummeted from $80,000 down to between $10,000 and $28,000 as major affiliate networks suspended them.

In the United States, using electronic communications to intentionally execute a scheme to defraud entities of money (such as ad commissions) constitutes federal wire fraud.

The FBI and federal prosecutors have historically targeted high-profile cookie-stuffing operations. Decades ago, eBay successfully worked with the FBI to criminally prosecute prominent affiliate marketers for the same fraudulent practice.

A spokesperson for Phia stated that any features causing commission misattributions were permanently removed on July 7, 2026. The company claims it is actively reviewing every transaction, hiring a head of compliance and working to issue transaction reversals to return the improperly obtained commissions to its brand partners.

Neither Phoebe nor Sophia has personally made a public statement regarding the leaked internal logs.

The Gates heiress’ professional background spans digital media, fashion journalism, public health research and social impact advocacy.

Launched in early 2025, she co-hosts “The Burnouts” podcast on Alex Cooper’s Unwell Network alongside her Phia co-founder Sophia. The show covers career transitions, young entrepreneurship and financial literacy, featuring prominent guest interviews.

She also works closely with organizations pushing for gender equity and healthcare access. In 2024, she was named the Rising Reproductive Freedom Champion by Reproductive Freedom for All.