Phoebe GatesSophia KianniPhia

Phia, co-founded by Phoebe Gates, removes features linked to cookie stuffing amid scandal; average daily revenue drops from $80,000 to $10,000–$28,000.

Phia, the startup co-founded by Phoebe Gates, has removed features linked to cookie stuffing amid a scandal, resulting in a dramatic drop in average daily revenue from $80,000 to between $10,000 and $28,000, according to reports following investigations into the company's practices.

Yahoo Finance Yahoo Finance+1 source19 August 2026 · 21:54 UTC
CuriousCats Full Story

Phia, co-founded by Phoebe Gates, has faced scrutiny over its use of cookie stuffing, a deceptive affiliate marketing practice. Investigations revealed that the company’s browser extension was adding tracking codes to users' purchases, allowing it to earn commissions on sales it did not facilitate.169

According to reports, these attributed sales accounted for 51% of Phia's credited sales in June 2026. Following the revelations, Phia stated, “Any features causing misattributions were immediately removed over a month ago on July 7.” The company is also reviewing transactions and issuing reversals to brand partners affected by the misattribution.

Internal communications indicated that the founders were aware of the cookie stuffing practice for at least seven months prior to the scandal's public exposure. Initially, Phia characterized the issue as a software bug, but later reports contradicted this claim, revealing that the feature was intentionally designed.23

The fallout has been significant, with average daily revenue dropping from $80,000 to between $10,000 and $28,000 after the removal of the controversial features. Despite the serious implications of cookie stuffing, which could fall under federal wire fraud statutes, no charges have been filed against Phia or its founders as of mid-August 2026.5

Key Insight
“Phia's browser extension was found to be adding tracking codes to users' purchases, allowing the company to earn affiliate commissions on sales it did not drive, which reportedly accounted for 51% of credited sales in June 2026. Legal experts warn that cookie stuffing could fall under federal wire fraud statutes, potentially leading to severe penalties.”
CuriousCats studied:
1
Yahoo FinanceYahoo Finance
“Following those investigations, Phia — the startup co-founded by Phoebe Gates, Bill Gates' daughter — said it had taken down functions linked to the tactic known as cookie stuffing.”
Yahoo Finance →
2
eciks.orgeciks.org
“Phoebe Gates’ shopping startup Phia is defending its response to a cookie stuffing scandal after new reporting revealed the founders were aware of the deceptive affiliate marketing practice for at least seven months, according to Bloomberg’s investigation published in August 2026.”
eciks.org →
Ask CuriousCats
Who co-founded Phia?
What led to the drop in Phia's revenue?
How does cookie stuffing work?
Are other companies facing similar scandals?
Which legal penalties might Phia encounter?
Get your CIA-level briefing,
in real time.
CuriousCats monitors the internet every minute for you and brings you the most personalized brief of videos, social media posts, news and more.
Download the App
Liked the depth here?
Get the full internet briefed for you any time of the day.
Get CuriousCats