Her proposal found an ally in Senate Commerce Interstate Commerce Subcommittee Chairman Byron Dorgan, D-N.D., who said he wanted the full committee to remove the exemption as part of an FTC authorization bill and send it to the Senate "very soon." The agency's reauthorization has not been extended since 1996.

"Technological advances have blurred the traditional boundaries between telecommunications, entertainment and information," Majoras said. "As the telecommunications and Internet industries continue to converge, the common carrier exemption is likely to frustrate the FTC's ability to stop deceptive and unfair acts and practices and unfair methods of competition with respect to interconnected communications, information, entertainment and payment services."

While Dorgan and Majoras agreed on the exemption, they clashed on other matters such as Dorgan's demands that the FTC be a fiercer watchdog and play a more active role on non-oil mergers, subprime home loan practices, and nondiscrimination among players in the ever-emerging electronic information and entertainment industry.

Majoras defended her agency's watchdog role and cited numerous examples of enforcement, citing that the FTC obtained over the last three years 250 court orders requiring defendants to pay more than $1.2 billion to redress consumers and received more than $38 million in civil penalties.

On the subprime mortgage practices, Majoras conceded the agency could have done more sooner, but said her staff "was swamped." Dorgan said "I don't want you to be swamped" and urged her to bid for more people.

Dorgan noted that the agency's payroll has dropped from 1,750 in 1979 to 1,074 now and suggested Majoras needs more help. But Majoras said she could not absorb 50 more employees a year into her small agency, requiring extensive employment interviews and training. After the hearing, she said perhaps 10 or 15 more individuals could be hired.

Dorgan, the only subcommittee member present, also heard from consumer advocates who campaigned for a more vigorous FTC enforcement effort.

Mark Cooper, research director for the Consumer Federation of America, said the FTC has "dropped the ball, failing to protect consumers from the abuse of market power." In particular he said federal regulators "have allowed a tight oligopoly in oil and a cozy duopoly [among telephone and cable firms] in broadband that have allowed artificial shortages and overcharges to consumers."