The Federal Trade Commision arrested two FTC consumer advocates on Monday for illegally promoting products and services that consumers might not have needed.
In an investigation that was first reported by the Wall Street Journal, the agency said it had received complaints from consumers that they had received “misleading” and “misinformed” information about some of the FTC’s products and the FTC itself.
FTC officials said they would “continue to investigate the complaint” and that the agency “will work closely with the Department of Justice” to take action.
The FTC has been investigating consumer complaints for years.
It has charged dozens of consumers for misleading or deceptive marketing and other wrongdoing.
Federal investigators had previously taken a similar approach to consumer complaints against a handful of companies that had advertised products in a way that was misleading or unfair.
The complaint against James R. Kallenbaum, the FTC official who was the subject of the WSJ report, comes as the agency is under scrutiny for its handling of consumer complaints about certain products.
The agency has not publicly discussed its investigation of Kallensbaum.
He was one of the few FTC officials to appear before Congress in the wake of the death of Michael Jackson, who died in 2010 at age 69.
During the hearing, Representative John Conyers, Democrat of Michigan, asked Kallenberg about an investigation into a website called MyKraftBaker, which advertised the products of a major auto-parts manufacturer.
The website was designed to promote a car made by Kallenhauer and a company called Tandy.
The Kallenoskys promoted the products on MyKampers website and said that the Kallesens’ son was the man who made the car.
In a statement to the AP, the company said it has cooperated with the FTC investigation.
“MyKraft Baker is a trusted name in the automotive industry, and has been since 2010,” the company added.
The site had more than 1 million visitors in March.
In response to a query about the Kallsens’ allegations, MyKamps’ CEO said that he did not know that his son was a Kallena and that he would not comment on the matter.
But he did say that the company has “worked with the government for years” and said, “Our customers have had a positive experience.”
In addition to Kallessenbaum, who is an associate at the law firm Wachtell, Lipton, Rosen & Katz, and an attorney at Wachsler, the two other FTC officials who were arrested were: Michael G. Grewal, a lawyer who had represented several consumer groups in the agency’s consumer protection division; and Michael B. Dolan, a partner at law firm Krieger, Lehrman, Schreck, and Lewis, who was also charged with misleading consumers.
The two people were also charged under the FTC Act, which is a federal law that prohibits deceptive practices in the sale of goods and services.
Karen A. Grafton, the acting FTC director, said that “federal law prohibits deceptive conduct in the production of consumer information” and added that the “Department will work closely and aggressively with the Justice Department to address the issue.”
The agency will also “take appropriate action against those who engage in deceptive conduct,” she said.
Kraft’s son, Mark Kallench, told the WSj that he believes the FTC had no authority to take any action against the company, which had been in business for over 40 years.
“They’re just trying to do what the law allows them to do and make their money,” he said.
“I think the FTC has gone too far in trying to enforce their laws.”
Grewals statement also referred to a complaint filed by the FTC against Kalleny and Kallenburg for the same actions.
The commission said in its complaint that “there are substantial indications that this conduct is widespread, that the conduct is misleading, and that consumers have been misled about their ability to obtain products and benefits.”