Phoebe Gates, daughter of Microsoft co-founder Bill Gates, was recently seen in New York City shortly after her digital shopping startup, Phia, was accused of an illicit practice known as "cookie stuffing." Gates, 23, was photographed disembarking from a helicopter at a New York City heliport on Sunday.
She was reportedly returning to the city, having potentially visited her sister Jennifer's horse farm in Westchester County. Gates was seen wearing merchandise from her startup, Phia, which operates as a browser extension designed to help shoppers find discount codes.
Phia's business model involves dropping a "cookie" on a user's browser when a discount code is selected at checkout. This cookie tracks web activity and informs retailers that Phia assisted in driving the sale, thereby earning the company a commission. However, reports emerged that Phia was allegedly dropping cookies even when users were not utilizing the service for discounts, leading to the accusation of overstating its role in sales and claiming undue credit for commissions.
According to a Bloomberg report, Phia's founders were aware of the potential overcounting of sales commissions for at least seven months. The alleged scheme has been traced back to at least December and involved sales with several major retailers, including Nike, Gap, and Nordstrom. This practice reportedly constituted a significant portion of Phia's revenue.
A spokesperson for Phia stated in July that any features causing misattributions were removed, and the company was reviewing transactions and issuing reversals to brand partners. The company also announced plans to hire a head of compliance.
"We are now continuing to connect our users with items and offers from thousands of brand partners," the spokesperson added. "We will learn from this and want to ensure our users have the best possible shopping experience, with features like our new digital closet and more to come."
Phia, co-founded by Gates and fellow Stanford alum Sophia Kianni, raised $30 million in funding in 2025 from investors including Hailey Bieber and Kris Jenner. The scheme of "cookie stuffing" can carry a maximum penalty of 20 years in federal prison, though legal experts suggest financial penalties are more likely for Gates.
While pursuing her entrepreneurial endeavors, Gates has expressed a desire to succeed independently of her parents' wealth. Her academic background includes courses at Stanford focused on artificial intelligence and entrepreneurship, as well as a secretive, invitation-only class that reportedly examined power dynamics and influence.