Phoebe Gates’ Startup Accused of Alleged Cookie-Stuffing Scheme

Phoebe Gates, co-founder of shopping-assistant startup Phia, has been accused in a Bloomberg report of using “cookie stuffing” features that allegedly claimed commissions on online purchases even when shoppers did not actively use the service. Phia said it removed any features that caused incorrect attribution in July, is reviewing affected transactions and has begun reversing commissions to brand partners. The company also said it is strengthening its compliance process. Internal messages reviewed by Bloomberg reportedly suggested the company knew about automatic cookie drops months earlier. The report said Phia’s daily revenue dropped sharply after the features were disabled. No criminal charge or conviction has been announced; legal experts say intentional cookie stuffing can potentially be prosecuted as wire fraud in the United States.

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