Phoebe Gates, Bill Gates’ daughter, faces scrutiny as her startup Phia is accused of cookie stuffing, raising questions over sales and commissions.

Updated on: Aug 19, 2026, 19:17:12 IST

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Phoebe Gates, 23, is the youngest daughter of Microsoft co-founder Bill Gates and Melinda Gates. She has recently come under attention after her fashion-tech startup, Phia, was accused of a “cookie stuffing” scheme.

Phoebe was recently spotted in New York City wearing Phia merchandise. The New York Post reported that she was seen getting off a helicopter while wearing a Phia-branded sweatshirt. The sweatshirt had the words “the future of fashion is nothing new” written on the back. She paired it with gray sweatpants, a blue baseball cap and black ballet flats.

Phoebe Gates spotted in New York

Phoebe was also carrying a brown purse and walking a small Dachshund. She was accompanied by a friend and bodyguards before getting into a chauffeured limousine. The photo agency that took the pictures said it believed Phoebe had returned to New York after a trip to Westchester County. The agency told the New York Post that she may have been visiting the area where her older sister Jennifer Gates owns a large horse farm.

Jennifer Gates owns a 124-acre horse farm in North Salem, Westchester County. The property is reportedly worth about $16 million and was given to Jennifer by Bill and Melinda Gates after she graduated from Stanford University, according to the New York Post. Phoebe is also a recent Stanford University graduate. She reportedly lives in a two-bedroom, loft-style apartment in New York City with pink walls and 20-foot-high ceilings.

Bill Gates daughter and ‘nepo baby’

Phoebe has previously spoken about wanting to build her own career without depending on her billionaire parents. She has said she has a strong desire to prove herself. That background has made the recent controversy around Phia more closely watched. Phoebe has been described as a “nepo baby” because she is the daughter of one of the world’s richest and most famous tech founders.

Phia startup raises $30 million

Phia is a digital shopping assistant that Phoebe Gates co-founded with fellow Stanford graduate Sophia Kianni. The startup is designed to help people find deals and products while shopping online. Phia raised $30 million in 2025. Its investors included celebrities and business figures such as Hailey Bieber, Kris Jenner and Spanx founder Sara Blakely.

How Phia shopping app works

The company works through a browser extension. Shoppers can use Phia while buying products from online retail partners. Phia allows shoppers to search for discount codes at checkout. A customer can click the Phia icon and the software searches the internet for available coupon codes.

When a customer uses a Phia coupon, the software places a tracking “cookie” on the shopper’s browser. This cookie tells the retailer that Phia helped bring the customer to the sale. Phia can then earn a commission from the retailer for helping generate that purchase. This type of tracking is common in affiliate marketing.

The controversy began because Phia was accused of placing these tracking cookies even when shoppers had not used Phia to find a coupon. Bloomberg reported that the company was allegedly taking credit for sales that it had not actually helped generate. This practice is known as “cookie stuffing.” In simple terms, it means placing tracking cookies on a user’s browser so a company can claim credit for a sale that it did not genuinely drive.

Nike, Gap, Nordstrom sales under scrutiny

The alleged activity reportedly went back to at least December. Bloomberg reported that the tracking issue involved sales at several major retailers, including Nike, Gap and Nordstrom. Bloomberg reported that the allegedly misattributed sales appeared to make up most of Phia’s revenue. This raised questions about how much of the startup’s reported business came from sales it had actually generated.

Phia responds to cookie claims

The controversy became public in July. Phia reacted after reports said the company was dropping more tracking cookies than it should. Phia said he was shocked by the reports and began taking action. A company spokesperson told the New York Post that any features causing the misattributions were removed on July 7.

The company said it was reviewing every transaction. Phia also said it had started reversing transactions for brand partners where sales had been wrongly attributed to the company. Phia also said it planned to hire a head of compliance. The company said the move was aimed at making sure a similar problem does not happen again.

The startup said it continues to work with thousands of brand partners. Phia also said it wants to improve the shopping experience through features such as its digital closet. However, a Bloomberg report added another layer to the controversy. Bloomberg reported that Gates and Kianni had known for at least seven months that Phia was overcounting its sales commissions.

Phia legal trouble explained

The alleged scheme could carry serious legal consequences. The New York Post reported that cookie stuffing can carry a maximum penalty of 20 years in federal prison. However, legal experts told the New York Post that prison may be unlikely in Phoebe Gate's case. They said financial penalties are more likely than jail time.

The scrutiny is especially significant because of Phoebe’s family background. Her father, Bill Gates, is the co-founder of Microsoft and has a fortune estimated at about $108 billion by Forbes. Phoebe has also been linked to entrepreneurship since her time at Stanford. She reportedly took courses that helped her develop ideas that later contributed to the creation of Phia.

One of those courses was focused on artificial intelligence and entrepreneurship. The classes reportedly helped her explore ideas around technology and business. Phoebe also reportedly took part in a secretive Stanford course called “So You Think You Can Rule the World?” The New York Post reported that the course was invitation-only.

Phoebe Gates and Stanford

Only 12 students were reportedly selected for the course. A former student told the New York Post that the group studied how power works and how to “hack” it. The unofficial course reportedly lasted 10 weeks. According to The Stanford Daily, students met every week to discuss money, power and the systems that influence how the world works.

The course was not publicly advertised and did not have a normal enrollment code. Students reportedly discussed the incentives and structures behind how society and institutions operate. The Phia controversy has now put Phoebe Gates’ business ambitions under a much brighter spotlight. Her startup has attracted major investors, but the cookie-stuffing allegations have raised questions about how Phia generated some of its sales and commissions.

Phia has denied wrongdoing through its public response and said it is correcting the transactions in question. The company said it removed the features responsible for the misattributions, is reviewing transactions and is strengthening its compliance system. For Phoebe, the scrutiny comes at a sensitive point in her career. The 23-year-old has publicly expressed a desire to prove herself independently, while her startup is now facing questions over its business practices.

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