Phoebe Gates’ Startup Faces Major Allegations

Phoebe Gates, the younger daughter of Microsoft co-founder Bill Gates, has come under scrutiny over allegations involving her startup, Phia. The AI-powered digital personal shopping assistant is accused of engaging in “cookie stuffing”, allegedly attaching tracking cookies even when customers did not use coupon codes and receiving commissions from retailers. If such conduct is proven to constitute federal wire fraud, local media reports say it could carry a maximum sentence of up to 20 years in prison under US law.

Phia responded to the allegations in July, saying it had identified the issue and described it as a technical error. The company said it had removed the features responsible and started the process of returning funds to partner companies. However, allegations have also emerged that the founders were aware of the cookie-stuffing issue several months earlier. The claims have now raised questions over potential legal consequences for Phoebe Gates and the startup.