Kathmandu— Phoebe Gates, daughter of Microsoft co-founder Bill Gates, is facing accusations that she knowingly participated in a fraudulent scheme at her shopping startup, Phia. The company, marketed as a digital shopping assistant, allegedly used “cookie stuffing” – automatically inserting affiliate tracking cookies into online purchases – to collect commissions on sales it did not legitimately earn. While the venture received significant investment and promotion from Bill Gates himself, internal communications obtained by Bloomberg suggest that both Phoebe Gates and co-founder Sophia Kianni were aware of the practice for months before publicly claiming it was a recent software issue.

Allegations of ‘Cookie Stuffing’

Phia’s browser extension reportedly inserted affiliate tracking cookies into users’ online purchases, allowing the company to claim commissions even when customers didn’t utilize Phia’s coupons or links. This practice, known as “cookie stuffing,” can be considered federal wire fraud and carries a potential prison sentence of up to 20 years. The controversy initially surfaced last month with Bloomberg’s initial report detailing the alleged scheme, prompting Phia to claim it had only recently discovered the issue and swiftly addressed it.

Internal Communications Reveal Prior Knowledge

Bloomberg reported Tuesday that internal Slack messages and source code contradict Phia’s claims of a recent discovery. The messages allegedly show Phoebe Gates and Sophia Kianni were aware of the practice for months. In a December exchange, Gates reportedly asked developers to verify automatic cookie drops across retailers to maximize monetization “every transaction.” Kianni then purportedly told engineers that maintaining these cookie drops was crucial.

Revenue Impact and Response

After disabling the features in July, Phia’s average daily revenue significantly decreased from approximately $80,000 to between $10,000 and $28,000. The company attributes part of this decline to suspending other monetization tools and states it has begun reversing improperly attributed commissions while also hiring a compliance chief.

Context of Scrutiny Surrounding Bill Gates

The allegations against Phia come as Bill Gates faces continued scrutiny regarding his relationship with convicted sex offender Jeffrey Epstein. Recently released files have contained allegations concerning extramarital encounters, requests for medication, and discussions about global health initiatives. Gates has denied involvement in Epstein’s crimes, stating he was blackmailed over affairs and calling the association a serious mistake.

Phia is currently reversing improperly attributed commissions and has hired a compliance chief as it attempts to address the allegations.

(With inputs from RT)

Originally published on abcnews.com.np.