‘You are weakening the voice of consumers’: Advocacy groups reeling after Ottawa’s funding cuts

Several consumer advocacy groups across Canada are raising alarms over the federal government's decision to phase out key initiatives that support their work. Ottawa announced it is dismantling the Canadian Consumer Protection Initiative and the Office of Consumer Affairs, programs that provide crucial funding and support to non-profit consumer organizations nationwide.

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It was shocking rather than surprising to hear that this program in the Office of Consumer Affairs is coming to an end.

Tahira Dawood, acting General Counsel at the Public Interest Advocacy Centre (PIAC), expressed shock, stating the cuts jeopardize the independent research and advocacy that have benefited Canadians for decades. PIAC, a national non-profit, represents consumers in sectors like telecommunications, financial services, and transportation. Dawood warned that without this program, consumers' ability to present arguments to regulators and participate in hearings will be severely diminished, effectively weakening their voice.

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This program has been in place for many decades and PIAC, along with other consumer groups, have relied on this program to produce very important and valuable independent consumer research.

Innovation, Science and Economic Development Canada (ISED) confirmed the move as part of Budget 2025's Comprehensive Expenditure Review. A spokesperson noted that savings are projected to reach $2.6 million per year by 2028-2029. The department maintains that agencies like the Financial Consumer Agency of Canada and the CRTC will continue to ensure consumer protection, fairness, and transparency in the marketplace.

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Agency organizations such as the Financial Consumer Agency of Canada, the CRTC, and others continue to provide Canadians with effective ways to voice their concerns and ensure fairness and transparency in our marketplace.

However, groups like Car Help Canada, which has relied on the initiative for 25 years for research funding, and Quebec-based Option consommateurs, argue this decision will tip the balance, making private interests more powerful than the public interest. They contend that the loss of this funding stream severely compromises their capacity for essential consumer advocacy research and public representation.

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You are weakening the voice of consumers because consumers don’t go on their own to present their arguments to a regulator. If there is no consumer group that is able to actively participate in different regulatory hearings or different matters, then you don’t have your voice on the table.