Startup co-founded by Bill Gates's daughter under fire for cookie-stuffing allegations

Phia, an AI-powered shopping startup co-founded by Phoebe Gates and Sophia Kianni, is facing allegations of using a deceptive marketing practice known as "cookie stuffing" to claim affiliate commissions on purchases it did not actually generate. The accusations stem from a Bloomberg investigation reported by multiple outlets.

According to TechCrunch, the practice involves placing tracking cookies on users' browsers without their knowledge, tricking retailers into crediting Phia for sales the app did not genuinely influence. The investigation raises serious questions about the startup's business model and its claims about the effectiveness of its AI shopping recommendations.

TechCrunchPhia accused of ‘cookie stuffing,’ taking affiliate credit on purchases it didn’t earn

"cookie stuffing"

Bloomberg's reporting, as summarized by thecut.com, found that Phia has been taking credit for sales it did not actually influence, despite significant celebrity backing and industry buzz. The startup, founded by the 23-year-old daughter of Microsoft co-founder Bill Gates and her friend, has positioned itself as a tool that uses AI to curate personalized product recommendations.

thecut.comPhoebe Gates's AI Shopping Start-up Phia Accused of Taking Credit for Uninfluenced Sales

"taking credit for sales it didn't actually influence"

ShortSingh explained that cookie stuffing is a well-known black-hat affiliate marketing technique that can violate retailer agreements and potentially consumer protection laws. The allegations suggest Phia may have been earning commissions on purchases that users would have made regardless of any interaction with the app, undermining the trust that advertisers place in affiliate programs.

ShortSinghShopping app Phia accused of cookie stuffing to claim unearned affiliate commissions

Phoebe Gates, who has previously spoken about wanting to build a transparent and trustworthy shopping platform, now faces scrutiny over whether her company's practices live up to that vision. Neither Gates nor Kianni have publicly responded to the specific allegations as of this writing, according to the outlets reporting on the investigation.