- Phia, the startup co-founded by Phoebe Gates, has removed features linked to cookie stuffing amid a scandal.
- The company initially characterized the issue as a software bug in July 2026, but later reports revealed that the feature was purposefully built.
- Phia removed the misattribution features on July 7, 2026, in response to the scandal.
- Following the removal of these features, Phia's average daily revenue dropped from around $80,000 to between $10,000 and $28,000.
- Phia co-founders were aware of cookie stuffing since December 2025, according to investigations.
- The deceptive practice reportedly accounted for about 51% of Phia's credited sales in June 2026.
- As of mid-August 2026, the company has not been charged with a crime, and no formal lawsuits or regulatory filings had been publicly initiated against Phia or its founders.
- Legal experts have noted that cookie stuffing can potentially fall under federal wire fraud statutes, which carry penalties of up to 20 years in prison.
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
“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.”










