Punishment Bill Gates' daughter could face after being accused of 'cookie stuffing'

Bill Gates' daughter Phoebe is facing scrutiny over allegations that her AI shopping assistant, Phia engaged in 'cookie stuffing' - as an expert breaks down the potential penalties if the allegations are proven to be true.

For those unaware, 'cookie stuffing' is 'is an illegal practice where an affiliate marketer inserts their unrelated tracking cookies into a user’s browser without their consent after the user views a page or clicks on a single link,' as per Branch.

In simple terms, it's a way of getting credit for someone else's online sale by secretly planting cookies.

Phia, which compares was founded by Bill Gates' daughter Phoebe, and her friend and Sophia Kianni, compares fashion and retail prices across different websites, as well as searching for discount codes and second hand alternatives.

A report by Bloomberg last month said the company had received attribution for purchases it had not driven, reported allegations that it had engaged in cookie stuffing. Phia told the outlet they had been 'made aware' of the situation 'in the last 24 hours'.

(Photo by Lev Radin/Anadolu Agency via Getty Images)

Legal expert, Star Kashman, founding partner of Cyber Law Firm, told the New York Post that 'wire fraud carries a statutory maximum of 20 years in prison,' however, prosecutors would have to prove that the founders of the app 'knowingly participated in a scheme to defraud'.

“Wire fraud would have to paint a picture of a knowing scheme that is organized to defraud these individuals (affiliates, businesses etc.) of their money," the expert said, claiming that the most likely penalties would be 'financial' for Phoebe and Kianni.

Kashman also told the outlet it would be 'very unlikely' that a young entrepreneur would be imprisoned for 20 years for the allegations on a first offence.

However, if the alleged scheme is proven to be true, the expert says there is a 'likely possibility' that the company would go to court.

Phia has not been charged with any criminal wrongdoing, and they also disputed aspects of Bloomberg’s findings.

Phia has been accused of cookie stuffing (Getty Stock)

Cookie stuffing, is 'treated as federal wire fraud in US courts' Ariel Givner, who is an IP & corporate attorney in FinTech, as well as the founder of Givner Law said on X, formerly known as Twitter.

"There’s a possibility of a max penalty of up to 20 years prison + fines/restitution," she said - as she went on to speak about what punishments 'previous violators' had been given.

Here, she revealed that Shawn Hogan, who was a 'top eBay affiliate' pleaded guilty and received ' 5 months federal prison + $25k fine'. Elsewhere, Brian Dunning, who was the owner of online marketing company Kessler’s Flying Circus, was sentenced to 15 months prison after a guilty plea.

What have Phia said about the allegations?

In a statement, to PEOPLE Phia said: “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.

“We are now continuing to connect our users with items and offers from thousands of brand partners,” the spokesperson continued. “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.”