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Advocacy groups such as Free Press in Washington, D.C., and Consumer Watchdog in Santa Monica called for congressional and regulatory probes into Carrier IQ. And on Friday, Rep. Ed Markey (D-Mass.) asked the Federal Trade Commission to investigate the company. Sen. Al Franken (D-Minn.) sent the company a letter requesting information about its data collection practices.

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The Consumer Watchdog activist group asked the U.S. Justice Department and the Federal Communications Commission to investigate the “Spyphone Scandal.” “The probe should extend beyond the software developer, Carrier IQ, and include operating systems developers like Google and Apple as well as carriers and device manufacturers, the nonpartisan, nonprofit public interest group said.

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Consumer Watchdog, a group that published a study about mortgage ad scams nine months ago, is calling for criminal charges and financial penalties against the major search engines in the current investigation. “These Internet company executives were active enablers of fraud against vulnerable homeowners,” said John Simpson, director of Consumer Watchdog’s privacy project. “They cannot be allowed to benefit from these ill-gotten gains.”

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“Clearly Microsoft and Yahoo have been turning a blind eye to these scammers,” said John Simpson, director of Consumer Watchdog’s Privacy Project. “Simply put, too many Internet companies including Google, Microsoft, and Yahoo–under the guise of an open Internet–allow and even encourage scam ads from which they make millions of dollars.”

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