Trump Mobile Prompts Scrutiny As Dems Blast It As 'Corruption, Self-Dealing' (UPDATED)

Updated with a comment from the White House.

The family of President Donald Trump announced Trump Mobile in June with plans for mobile phones made in America and a low-cost monthly plan. While some of those initial plans have fallen apart, Democratic members of Congress are questioning how the company would be regulated.

What Happened: Plans to launch Trump Mobile with a Trump-branded phone could put pressure on U.S. regulators who would be responsible for regulating a product and any potential conflicts of interest for the president.

While the phone has yet to launch with a current timeline of sometime in 2025 expected, Democratic lawmakers are not holding back and putting pressure on regulators ahead of the launch, as reported by The Verge.

Six Democratic members of Congress signed a letter sent to the Federal Communications Commission, Federal Trade Commission, Food and Drug Administration, Commerce Department, Treasury Department and the U.S. Trade Representative's Office asking how the phone and mobile company would operate without having "undue political influence."

The lawmakers who signed the letter, which was viewed by The Verge are:

• Sen. Elizabeth Warren (D-Mass.)
• Sen. Richard Blumenthal (D-Conn.)
• Sen. Adam Schiff (D-Calif.)
• Sen. Chris Van Hollen (D-Md.)
• Rep. Doris Matsui (D-Calif)
• Rep. Greg Casar (D-Texas)

The six agencies represent various aspects of regulation, including regulating mobile virtual network operators across state lines (FCC), enforcing laws against consumer deception (FTC) and regulating software apps that have telehealth benefits promised by the company (FDA).

"Trump Mobile offers yet another avenue for tech and telecom companies to purchase influence with President Trump, such as by offering Trump Mobile favorable conditions for MVNO arrangements like preferential network access or pricing arrangements, making their proprietary apps available on the Trump Mobile platform, or selling T1 devices in their stores," the letter reads.

The six Democrats ask regulators what they would do if the White House or Trump asked them to stop investigating potential harmful practices by the company.

"It is critical that federal regulators continue to evenhandedly enforce competition and consumer protection laws against Trump Mobile and any companies with which it works, especially in the face of this opportunity for corruption and self-dealing for President Trump."

White House Press Secretary Karoline Leavitt responded: "The media’s continued attempts to fabricate conflicts of interest are irresponsible and reinforce the public’s distrust in what they read. Neither the President nor his family have ever engaged, or will ever engage, in conflicts of interest."

Read Also: Elizabeth Warren Has The Receipts: ‘Bribery In Plain Sight’ Funding Trump’s Library

Why It's Important: The letter comes with many lawmakers raising concerns about Trump's support for the cryptocurrency sector, which could benefit the president's wealth and various companies run by or supported by his children.

Several technology CEOs made large donations to Trump's inauguration fund, a move viewed by some as bribes in plain sight that could be used to influence future policy or win favorable relationships with the president.

By issuing the letter ahead of the phone's potential launch, the lawmakers are attempting to get ahead of any possible conflicts of interest. The White House administration and regulators could choose to ignore the concerns and allow the phone company to operate freely.

Trump Mobile initially planned on operating on U.S. wireless networks with phones "Made in America," but that wording was later taken down from the company's website. If the phones are not made in America, this could open the door for concerns that Trump phones aren't being treated the same with tariffs as other phone operators.

The initial plan was for several plans to be offered including "The 47 Plan," with a cost of $47.45 per month, a nod to Trump being both the 47^th and 45^th president of the United States.

Terms of Use for Trump Mobile said the network is powered by Liberty Mobile, a mobile virtual network operator using the T-Mobile network, which is also used by T-Mobile US Inc (NASDAQ:TMUS).

A gold T1 phone is available to preorder price of $100 deposit with a total price of $499.

“Trump Mobile is going to revolutionize cellphones, mobile calling,” Eric Trump previously told Fox News on Monday.

Did You Know?

• Congress Is Making Huge Investments. Get Tips On What They Bought And Sold With Our Easy-to-Use Tool

Photo: Algi Febri Sugita via Shutterstock