Punishment Bill Gates' daughter could face for 'cookie stuffing' based on previous high-profile cases
The alleged 'cookie stuffing' controversy involving Phoebe Gates could land her in a lot of legal trouble, according to this expert.
A lawyer has weighed up the possible punishments that the daughter of Bill Gates and Melinda French might face if the claims about her engaging in the deceptive practice are proven.
Legal eagles said that it would be classed as federal wire fraud, which carries a maximum sentence of 20 years in prison - however, this attorney reckons that the 23-year-old won't end up behind bars.
Gates is the co-founder of Phia, a digital shopping assistant company which she launched alongside Sophia Kianni in April 2025.
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It promises to provide consumers with the 'lowest price every time' without the hassle of sifting through a slew of websites, as the AI-powered browser extension 'applies the best coupon codes at checkout'.
According to Phia, it generates revenue 'through affiliate links from our trusted secondhand partners'.
"Every time you make a purchase using our suggested links, we receive a small commission at no extra cost to you," it states.
This commission is tracked with cookies - but according to a bombshell report from Bloomberg, Phia has been taking credit for sales that it did not generate, which is known as 'cookie stuffing'.
Citing 'internal communications and people with knowledge of the matter' as its sources, the publication alleged that Gates and Kianni were aware of this since December 2025.
Conflictingly, Phia said it had only been aware of the alleged cookie stuffing scandal 'within the last 24 hours'.
Phia's statement
A spokesperson for the firm said that 'any features causing misattributions were immediately removed over a month ago on July 7'.
"We are reviewing every transaction, we are fully committed to and have already begun issuing all transaction reversals to brand partners as a result of any misattribution, and we are hiring a head of compliance to make sure something like this never happens again," a statement from Phia said.
"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."
The feature, according to Bloomberg, would trigger a cookie into the checkout process if the extension popped up on the page but without a user actually having utilised the service.
Bloomberg alleges that Phia's average daily revenue slumped to between $10,000 (£7,400) and $28,000 (£20,710) after the feature was removed, whereas it used to sit at around $80,000 (£59,300).
Although the firm has not been charged with any criminal wrongdoing, attorneys have explained that the allegations amount to federal wire fraud in the US.
According to Washington law firm Burnham & Gorokhov, this white collar crime can 'carry long prison terms even for people with little or no criminal history'. The maximum penalty is 20 years imprisonment.
The severity of the punishment is often dictated by the loss sustained to the victim and the 'gain' to the defendant.
"The loss component can have a profound impact on sentencing, and often means the difference between probation and prison," Burnham & Gorokhov states.
What could happen next?
Speaking to the New York Post, legal expert Star Kashman explained that prosecutors would have to prove that Phia's founders knowingly engaged in the fraudulent practice.
The founding partner of Cyber Law Firm said: "This can’t be a careless or negligent error. Wire fraud would have to paint a picture of a knowing scheme that is organised to defraud these individuals of their money."
She reckons that the 'likely penalty' would be a financial one, while saying that she thinks it is 'very unlikely' Gates would be imprisoned for two decades. Kashman added: "Even with intent, prosecution is never automatic."
Still, the attorney said there is potential for the case to be brought to court if the cookie stuffing allegations are proven.
LADbible Group has approached Phia for further comment.
Topics: Bill Gates, Technology, Shopping, US News
Olivia Burke