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White House: Conway has been 'counseled' after touting Ivanka Trump's products

WASHINGTON - President Trump's official counselor, Kellyanne Conway, was "counseled" after she told TV audiences to "go buy Ivanka's stuff," the White House said Thursday.

Legal experts said Conway had broken a key ethics law banning federal employees from using their public office to endorse products. White House press secretary Sean Spicer said Thursday that Conway "has been counseled," but offered no other comment.

Federal law bans employees from using their public office to endorse products. White House press secretary Sean Spicer said Thursday that Conway "has been counseled," but offered no other comment.

Conway, speaking to "Fox & Friends" viewers from the White House briefing room, was responding to boycotts of Ivanka Trump merchandise and Nordstrom's discontinuation of stocking her clothing and shoe lines, which the retailer said was in response to low sales and which the president assailed as unfair.

"I'm going to give it a free commercial here," Conway said of the president's daughter's merchandise brand. "Go buy it today."

Conway and officials from the Office of Government Ethics did not respond to requests for comment Thursday.

Several attorneys, including former heads of federal agencies, said Conway's endorsement directly conflicted with OGE rules designed to separate government policy from private business dealings.

"I don't see what their defense is," said Campaign Legal Center general counsel Lawrence Noble, who is also former counsel for the Federal Election Commission. "She did this on television. She was very clear it was advertising. Hopefully at the very least they will acknowledge this is wrong."

Don W. Fox, former general counsel and former acting director of OGE, told The Washington Post that "Conway's encouragement to buy Ivanka's stuff would seem to be a clear violation of rules prohibiting misuse of public office for anyone's private gain."

He added: "This is jaw-dropping to me. This rule has been promulgated by the federal Office of Government Ethics as part of the Standards of Conduct for all executive branch employees and it applies to all members of the armed forces as well."

Attorneys said a typical executive-branch employee who violated the rule could face significant disciplinary action, including a multiday suspension and loss of pay.

Enforcement measures are largely left to the head of the federal agency - in Conway's case, the White House.

Federal law states the director of OGE can advise the White House and Conway of the violation, conduct its own investigation and recommend that they consider disciplinary action.

But OGE's recommendations are nonbinding, and the ultimate decision resides with the White House.

Conway's endorsement comes as the Trump administration faces growing scrutiny over whether it is taking fears of conflicts of interest seriously.

Rep. Elijah E. Cummings (Md.), the ranking Democrat on the House Oversight Committee, wrote a letter Thursday to his Republican counterpart, Jason Chaffetz (Utah), urging the committee to review what he called "a textbook violation of government ethics laws."

Chaffetz, who before the election was a strong advocate of investigating Hillary Clinton, said this week he would likely resist Democrats' urging to investigate possible conflicts of interest surrounding Trump's business interests. Chaffetz did not respond to requests for comment.

Citizens for Responsibility and Ethics in Washington executive director Noah Bookbinder called Conway's endorsement "just another example of what looks like a disturbing pattern of this administration acting to benefit the businesses of the president's family and supporters."

Nordstrom shares sunk after President Trump tweeted that the department store chain had treated Ivanka Trump "so unfairly" when it announced last week that it would stop selling her clothing and accessory line. Associated Press/Nov. 11, 2016

The president took to Twitter on Wednesday to lash out at Nordstrom for dropping Ivanka Trump's line, saying his daughter had "been treated so unfairly" by the store.

Said Peter Schweizer, who has worked closely with Trump aide Stephen K. Bannon and wrote the book "Clinton Cash," which was critical of donations to the Clinton Foundation: "They've crossed a very, very important bright line, and it's not good. To encourage Americans to buy goods from companies owned by the first family is totally out of bounds and needs to stop.

"Clearly, the Trumps feel some of this is related to politics. But whether that's true or not, these marketing battles need to be fought by Ivanka and her company. They cannot and should not be fought by government employees and the White House," Schweizer said. "It's time to move beyond the mindset and the role of a businessman and assume the mantle of commander of chief."

Conway's endorsement of the Ivanka business also highlights an awkward reality for a White House threatening U.S. companies seeking to move jobs or operations overseas. Nearly all of Ivanka-brand merchandise is manufactured in low-cost-labor countries, including China, Indonesia, and Vietnam.

President Donald Trump speaks Thursday during a meeting with Senators on his Supreme Court Justice nominee Neil Gorsuch in the Roosevelt Room of the White House in Washington. Associated Press

Trump critics quickly seized on the endorsement. Robert Weissman, president of liberal advocacy group Public Citizen, said in a statement, "Conway's self-proclaimed advertisement for the Ivanka Trump fashion line demonstrates again what anyone with common sense already knew: President Trump and the Trump administration will use the government apparatus to advance the interests of the family businesses."

Trump last month tweeted his own support for another retailer, L. L. Bean, saying, "People will support you even more now. Buy L. L. Bean." A company board member, Linda Bean, donated money to a pro-Trump super PAC. Lawyers said the federal ban on endorsements specifically exempts the president and vice president.

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