Bill Gates’ daughter, Phoebe Gates, is in hot water and is facing growing scrutiny over allegations involving her shopping company. Now, a legal expert has revealed what could happen if the claims are proven to be correct: a long prison sentence.

23-year-old Phoebe Gates is the co-founder of Phia, an AI-powered shopping assistant. The company helps shoppers find deals and earns money through commissions from affiliate links.

But recently, Phia has been accused of using a practice known as “cookie stuffing.” Easily explained, it’s that the company allegedly placed tracking cookies on shoppers’ browsers and took credit for sales that it did not actually generate.

A report from news outlet Bloomberg claims Gates and Kianni were aware of the practice as far back as December 2025. Phia has disputed the allegations. She explained that features that could have caused incorrect sales tracking were removed 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 read.

“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.”

Bill Gates’ daughter Phoebe could face 20 years in prison
The allegations could have serious consequences if prosecutors were able to prove that the founders knowingly took part in a scheme to defraud others. So what could the punishment be. Well, it can have very serious consequences for Phoebe Gates..

Per Washington law firm Burnham & Gorokhov, the alleged conduct could potentially be treated as federal wire fraud, which carries a maximum sentence of 20 years in prison. However, some legal experts have already said it is unlikely that Gates would actually receive a 20-year prison sentence.

Attorney Star Kashman told the New York Post that prosecutors would first have to prove that the alleged activity was intentional — rather than simply a mistake or software problem.

She said a financial penalty would be the more likely outcome, adding that prosecution is “never automatic.”