Carney Government Slashes Consumer Protection Funding

Office of Consumer Affairs and the projects it funds are being wound down by March, stretching already marginalized advocacy groups

The federal government is taking an axe to consumer protection in Canada with a shutdown of the Office of Consumer Affairs (OCA) and the projects it funds.

The slashing, which eliminates projects under the OCA’s Canadian Consumer Protection Initiative (CCPI), is part of the comprehensive expenditure review announced by Prime Minister Mark Carney and Finance Minister François-Philippe Champagne during last fall’s budget.

“Difficult decisions have been required to ensure that resources are directed toward primary priorities, while delivering programs more efficiently and effectively,” wrote Etienne-René Massie, assistant deputy minister of small business, tourism and marketplace services, in an email sent to consumer advocacy groups on Thursday that was obtained by Do Not Pass Go.

“In this context, some non-legislative and non-regulatory consumer-related functions will be impacted. This includes the CCPI and the Office of Consumer Affairs, its programs and initiatives which will be wound down by March 31, 2027.”

Numerous consumer groups – including the Public Interest Advocacy Centre, the Consumers Council of Canada, Consumers' Association of Canada (Manitoba) and Union des consommateurs – will be negatively affected by the decision.

PIAC, for example, was awarded more than $285,000 for consumer awareness and organizational development projects spanning 2025 to 2027 under the CCPI, while the Consumers Council was similarly granted nearly $500,000 for the same period.

In total, the CCPI awarded more than $7.3 million to consumer groups in its latest award period for initiatives ranging from protecting seniors from fraud and junk fee tracking to food affordability and digital privacy rights.

Current projects will continue to be funded, but will have to be completed by the shutdown date in March.

“We understand that this news may present challenges for some of you, and we want to reiterate that the Government of Canada continues to recognize the importance of consumer protection and the vital role that consumer groups play in supporting and advocating for Canadian consumers,” Massie wrote.

The shutdown follows January job cuts at the Competition Bureau, with 24 positions being eliminated over the next three years.

A spokesperson for Innovation, Science and Economic Development, which governs both the OCA and Bureau, said the shutdown will affect six employees and result in a costs savings of $2.6 million per year by 2028-2029. The spokesperson added that federal and provincial agencies such as the Financial Consumer Agency of Canada and the CRTC will continue to provide protection for Canadian consumers.

“This decision was made because consumer protection falls under the jurisdiction of several departments and agencies, based on their respective mandates and jurisdictions, providing a range of protection for consumers,” she said in an email. “The government is ensuring more contestable markets, prohibiting deceptive marketing and strengthening consumer transparency by supporting the work of the Competition Bureau.”

Consumer advocacy groups blasted the news as short-sighted and another sign that the federal government is continuing to move away from supporting consumer protection and competition.

“The amount of spending in this area by the government is negligible to begin with so this can’t be seen as making a difference to the bottom line,” said Neil Hartung, a lawyer with the Consumers Council of Canada.

“If you disempower consumer voices, you’re going to get the market that you deserve. And that’s already on the tread line to consumers being marginalized.”

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