What is ‘cookie stuffing’? Why Bill Gates’s daughter is under fire over the online tactic

"Cookie stuffing" is not a culinary term, but rather a deceptive online marketing tactic that has recently drawn scrutiny. It's the practice of fraudulent "cookies" – small data files stored in a user's web browser – to falsely claim credit for online sales. Phoebe Gates, daughter of Microsoft co-founder Bill Gates, is currently under fire for her involvement in a company called Phia, which has been accused of engaging in this illicit activity.

Phia operates as a shopping assistant, using browser extensions like Chrome or Safari to help users locate discounts or coupon codes. The company earns revenue by earning commissions from retailers for facilitating completed sales. However, the problem arises when Phia falsely takes credit for sales that didn't happen or when users didn't meet any conditions that would typically warrant the claim. This practice can lead to significant financial losses for retailers and may even result in criminal charges.

Phoebe Gates and Phia's cofounder, Sophia Kianni, are accused of knowingly participating in this tactic for several months and employing various strategies to carry it out. The alleged fraudulent activities have impacted well-known brands such as Nike and Nordstrom. It's worth noting that cookie stuffing is not a new phenomenon. In 2014, Shawn Hogan, former CEO of a San Diego software company, faced jail time and a hefty fine for his role in a similar scheme against eBay.

Despite affiliate marketing being common, most programs explicitly disallow such deceptive practices.