Bill Gates's nepo-daughter Phoebe is accused of breaking platform policies with new shopping app that's said to have used 'FAKE' clicks to make money

Bill Gates’s youngest daughter, Phoebe Gates, faces allegations that her newly launched shopping app, Phia, violated platform policies by employing deceptive tactics to generate revenue. According to reports, the AI-powered browser extension, which helps users find the best deals on clothing and accessories from over 40,000 retail and resale sites, was accused of registering so-called “fake clicks” on retailers’ websites. This method allowed Phia to claim commissions on sales it did not actually facilitate. The controversy emerged following an investigation conducted by Bloomberg, Capital One Shopping, and independent researcher Ben Edelman. Their findings revealed that Phia’s app had opened a background tab and inserted its own referral code into the checkout process without requiring user input. This technique, known as “cookie stuffing” or attribution fraud, involves replacing another referrer’s unique tracking code with the app’s own, thereby falsely attributing sales to Phia. Such actions are widely regarded as a breach of digital platform policies and are typically prohibited by major affiliate networks. Impact.com, one of the largest affiliate networks, confirmed that it had suspended Phia’s account after detecting behavior inconsistent with its guidelines. A spokesperson for Phia acknowledged the issue, stating that the problem arose from a recent update to the app’s codebase introduced in December. They claimed the issue was identified within the past 24 hours and swiftly addressed by their team, who worked overnight to resolve the matter. The company emphasized that it undergoes regular audits by its affiliate network partners and has always adhered to compliance standards. Phoebe Gates, 23, is the daughter of Microsoft co-founder Bill Gates and his former wife, Melinda French Gates. She co-founded Phia with her former Stanford University roommate, Sophia Kianni, launching the app in April 2025. Within a week of its debut, Phia climbed to the 21st position on the App Store and achieved 20,000 downloads. By the end of the first three months, the app had amassed over 370,000 downloads. As of September 2025, Phia had surpassed 500,000 downloads and secured $8 million in initial funding. Additional investment of $35 million followed in January 2026, valuing the startup at $185 million just one year after its launch. Phia has attracted notable celebrity investors, including Kris Jenner, Hailey Bieber, SPANX founder Sara Blakely, Fanatics founder Michael Rubin, and former Facebook COO Sheryl Sandberg. These high-profile endorsements underscore the app’s rapid rise in the competitive e-commerce space. Despite this success, the allegations against Phia raise questions about the ethical implications of such business practices, particularly when associated with a prominent family name. The incident highlights broader concerns regarding the accountability of tech startups, especially those backed by influential figures. While Phia claims to have rectified the issue and continues to operate under the assumption of compliance, the episode underscores the need for greater transparency and oversight in the digital economy. The effectiveness of current regulatory frameworks in preventing such fraudulent activities remains a topic of debate among industry experts and consumer advocates alike. Looking ahead, the resolution of this case will depend on whether further investigations uncover additional violations or confirm that the issue has been fully addressed. The outcome could influence future regulatory approaches toward similar technologies and set a precedent for how such startups are scrutinized moving forward. For now, Phia continues to function, but the shadow of these allegations lingers over its operations.