Cookie Stuffing Allegations Rock Bill Gates’ Daughter’s Startup Phia
Phoebe Gates, daughter of Microsoft co-founder Bill Gates, and her Stanford roommate Sophia Kianni are facing serious allegations that their shopping startup, Phia, engaged in ‘cookie stuffing’—a deceptive practice that can lead to up to 20 years in prison. According to a recent Bloomberg report, internal Slack messages suggest the founders were aware for months that automated tracking cookies were running without proper attribution, allowing Phia to claim commissions on sales it did not actually generate. The company initially dismissed the issue as a software bug in July, but the leaked messages indicate the problem was known for at least seven months before being addressed.
The implications are significant for Phia, which had raised substantial funding and attracted high-profile backers. After the tracking features were disabled in July, Phia’s average daily revenue plummeted from $80,000 to between $10,000 and $28,000, as major affiliate networks suspended the company. In June alone, cookie stuffing allegedly accounted for a substantial share of the merchandise value Phia claimed credit for. This sharp decline underscores how reliant the startup was on these questionable commissions, raising ethical and legal concerns about its business practices.
While the allegations against Gates and Kianni remain unproven, they cast a shadow over the young company’s credibility. The case highlights the growing scrutiny of affiliate marketing practices and the potential consequences for startups that prioritize growth over compliance. As the investigation unfolds, the tech and business communities are watching closely, and the outcome could have lasting implications for Phia’s future and the broader industry.
For now, no charges have been filed, and Gates and Kianni have not publicly responded to the latest revelations. However, the reputational damage may be difficult to repair, especially given the high-profile nature of the founders. This incident serves as a cautionary tale about the importance of transparency and ethical conduct in the fast-paced world of tech startups.
Shimanta Das 
