Phia, an AI-powered shopping app co-founded by Phoebe Gates, the youngest daughter of Microsoft co-founder Bill Gates, has been accused of generating "fake clicks" on retail websites and wrongfully claiming commissions on sales it did not drive. The issue, which has since been resolved, involved the app's browser extension allegedly registering clicks without user interaction, a practice known as "cookie stuffing" or attribution fraud.
An investigation by Bloomberg, Capital One Shopping, and researcher Ben Edelman found that Phia's app would open a background tab and inject its own referral code during the checkout process. This action allowed Phia to replace other referral codes and claim commissions for sales it hadn't earned. Impact.com, a major affiliate network, reportedly suspended Phia's account due to behavior inconsistent with its platform policies.
A spokesperson for Phia acknowledged the issue, stating that a recent code release caused "misattributions from a subset of users." The company confirmed the issue was introduced in December and has since been fixed. Phia also asserted that it is regularly audited by its affiliate network partners and has "always maintained compliance."
Phoebe Gates, 23, launched Phia with her Stanford University roommate Sophia Kianni in April 2025. The app aims to help shoppers find the best prices for clothing and accessories by comparing options from over 40,000 retail and resale sites. Phia generates revenue through affiliate commissions on sales made via its browser extension.
Within its first week of launch, Phia ranked No. 21 on the App Store and achieved 20,000 downloads. By September 2025, the app surpassed 500,000 downloads and secured $8 million in funding. In January, it raised an additional $35 million, valuing the company at $185 million approximately one year after its debut. Notable investors include Kris Jenner, Hailey Bieber, and Sara Blakely.
This is not the first controversy surrounding Phia's business practices. In November 2025, cybersecurity researchers claimed the app was logging users' web browsing history, including sensitive data. Phia responded by stating that the browser extension only logged webpage content to identify new retail websites and never stored sensitive user data, noting that users must agree to terms allowing it to "read and change all your data on all websites."
Earlier in 2026, Gates faced criticism when content creator Kacie Nicole Margis shared an Instagram direct message exchange. In the messages, Gates offered Margis early access to Phia in exchange for a paid social media promotion, citing Phia's limited budget as a "scrappy startup." Margis expressed that it felt disingenuous given Gates's background and her parents' wealth.
Phoebe Gates is the youngest daughter of Bill Gates and Melinda French Gates. Her father's net worth is estimated at $104 billion. Gates has stated she has not received financial support from her parents for Phia, relying instead on outside investors. She has expressed a desire to build a company independent of her family's privilege and name.