Phia, the shopping comparison app co-founded by Phoebe Gates, daughter of Microsoft co-founder Bill Gates, is facing renewed accusations of knowingly employing deceptive tactics to secure sales commissions. Internal messages reportedly show Gates pushing for the implementation of a revenue-boosting feature as early as December 2025, a timeline that contradicts the company's previous statements.
Phia had described the practice as a "software bug" when it was initially reported and subsequently removed it. However, a Bloomberg report, citing obtained internal messages, now claims that Gates and her business partner, Sophia Kianni, actively urged engineers to deploy features designed to increase revenue at the expense of competitors. The practice in question is known as 'cookie stuffing,' which is generally prohibited by retail partners like Nike, Gap, and Nordstrom.
Cookie stuffing allows a company to earn a commission on a purchase even if a different comparison service originally referred the shopper to the retailer. Typically, comparison sites earn commissions by using online trackers, or 'cookies,' to confirm their role in a sale. These cookies are supposed to be placed only after a user interacts with the site, such as by clicking a link or using a coupon code. Phia's alleged method involved dropping cookies on users' profiles simply for opening the app or website, potentially overriding cookies from rival sites that users had actively engaged with.
Internal Slack messages reportedly show Gates inquiring about the status of automatic cookie drops on December 18, stating, "Can u confirm auto pop for cookie drop is live on ALL sites w a coupon to confirm we are monetizing on all gmv (gross merchandise value) through those or is not live." Another message indicated Gates was concerned about lower-than-expected revenue from partner website Etsy and urged an engineer to ensure automatic cookie drops were active, emphasizing, "this is SUPER core to rev" (revenue).
Meanwhile, Sophia Kianni reportedly pushed back against an engineer who warned that a particular tactic was "against compliance." According to Bloomberg, Kianni inquired about dropping a cookie if a user attempted to close the Phia app or browser window, a move that could allow Phia to claim commission on subsequent purchases made by that user. The engineer reportedly warned that this risked Phia being banned from the Chrome web store.
The impact of disabling these alleged deceptive features was significant. After the features were halted last month, Phia's daily revenue reportedly dropped from an average of $80,000 to between $10,000 and $28,000. Marketing expert Ben Edelman suggested that Gates and Kianni prioritized quick profits over adhering to contractual obligations with merchants.
Phia has begun repaying some of the commissions earned through these practices. Impact.com, a platform that facilitates payments to comparison sites, has reportedly banned Phia from its marketplace. Phia issued a statement confirming that any features causing misattributions were removed over a month ago on July 7. The company stated it is reviewing transactions and issuing reversals to brand partners, and is hiring a head of compliance to prevent future issues. The company also noted its commitment to improving the user shopping experience.
Phoebe Gates, 23, launched Phia in April 2025 with Kianni, a former Stanford University roommate. The app quickly gained traction, ranking No. 21 on the App Store within its first week and surpassing 500,000 downloads by September 2025. The company reportedly secured $8 million in funding later that year, followed by an additional $35 million in January, valuing the company at $185 million. Phia also lists celebrity investors such as Kris Jenner and Hailey Bieber.