Phia, the artificial intelligence shopping application co-founded by Phoebe Gates, is facing allegations of deceptive business practices.
The startup is accused of employing a technique known as "cookie-dropping" to improperly claim affiliate commissions on online purchases that users made without using the app's referral links.
The controversy centers on claims that Phia's software places tracking cookies on users' browsers even when they are not actively engaging with the platform's shopping features.
This allows the company to receive a cut of sales from major retailers regardless of whether the app influenced the transaction.
The practice has drawn criticism for violating user trust and potentially breaching affiliate marketing terms of service.
The allegations have brought significant scrutiny to the venture, which has gained prominence largely due to its association with the Microsoft co-founder's family.