Earlier this year, the federal government announced that it would eliminate funding for consumer associations across the country, representing a savings of $5 million.

And yet, after cutting the program, Minister of Industry committed to finding a way to ensure that civil society organizations have access to funding. However, the budget announced today includes no funding for consumer associations.

“In the end, consumers are the ones who will pay the price,” says Christian Corbeil, general manager of Option consommateurs. “Large corporations will have free reign to propose policies to elected officials that serve their own interests, without a watchdog to ensure that consumers get their money’s worth.”

From rising grocery costs to hidden fees on phone bills, to difficulty obtaining refunds for cancelled flights, bank fraud and greenwashing, consumer associations in Ottawa defend citizens on many fronts.

“Without the resources to do our work and advocate for the sustainability or safety of consumer products, it is people’s health and well-being that will suffer,” explains Cori Ferguson, executive director of the Consumers Council of Canada.

The funding program eliminated earlier this year helped consumer associations make gains on electronic devices and appliance repairability, the regulation of tip prompts and clearer price displays in grocery stores, expertise which will undoubtedly be lost.

“At a time when Canadians are struggling with affordability, consumers deserve a strong, independent voice in the decisions that affect their lives. Without meaningful support for consumer advocacy, industry interests risk overshadowing the public interest. This budget represents a missed opportunity to ensure that consumers have a seat at the table,” says Tahira Dawood, Acting General Counsel at the Public Interest Advocacy Centre.

Without support from Ottawa, consumer associations in Canada may have to significantly scale back their activities or even close their doors.

Signatory organizations

Option consommateurs

Consumers Council of Canada

Public Interest Advocacy Centre (PIAC)

Forum for Research and Policy in Communications

Consumer’s Association of Canada (CAC) Manitoba

Car help Canada

Canadian Anti-Monopoly Project (CAMP)

Automobile Protection Association (APA)

Fashion Takes Action

Union des consommateurs

Équiterre

Quebec Environmental Law Centre (CQDE)

Coalition des associations de consommateurs du Québec (CACQ)

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In its letter to Committee Chair, the Honourable Karina Gould, and members of the Committee, PIAC reiterated its serious concerns about the elimination of the Office of Consumer Affairs (OCA) and the Canadian Consumer Protection Initiative (CCPI), and the potential consequences for consumer representation in Canada.

For 50 years, PIAC has advocated for the interests of Canadian consumers, particularly lower-income and vulnerable consumers. Through our legal and research work, including our regular participation in regulatory proceedings and government consultations, PIAC has worked to ensure that consumers have a meaningful voice in decisions affecting their rights.

Funding administered through OCA has supported important consumer research on issues such as communications affordability, privacy, broadband advertising, grocery competition and many other issues affecting consumers. These studies have informed PIAC’s advocacy and assisted us in presenting relevant evidence and recommendations that protect and advance consumer interests.

The loss of this funding threatens the ability of consumer organizations to continue this work. This would directly impact Canadians who would lose an important channel through which their concerns about affordability, access to essential services, privacy, unfair treatment and many other issues reach decisionmakers.

PIAC’s Key Recommendations

• Establish funding of at least $5 million annually for independent consumer organizations, indexed to inflation, beginning in 2027–28. Provide this funding on a stable basis through renewable five-year agreements.
• Prevent an interruption in funding after March 2027. Maintain the current OCA office or establish a clearly mandated and adequately resourced federal funding office, and provide bridge funding until the permanent arrangements are operational.
• Establish a formal framework for ongoing consultation and engagement with consumer organizations to ensure that consumer interests are consistently represented in federal policy and regulatory decision-making.

As new technologies, including artificial intelligence, create additional challenges for consumers, the need for research and effective consumer representation remains critical. We emphasize that while government regulators and enforcement agencies perform important functions, they do not replace the independent perspective that consumer advocacy organizations bring to policy development. PIAC urges the federal government to recognize the importance of consumer advocacy and ensure that organizations representing Canadians have the resources necessary to continue their work.

For the full letter, see here.

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Drawing on focus group findings, the report examines gaps in consumer awareness and provides a consumer-friendly overview of the Canadian customs system. It defines key terms, identifies the main participants in the customs clearance process and explains the role of the Canada Border Services Agency (CBSA) as the primary federal agency overseeing the customs regime. The report distinguishes between duties and fees collected by the CBSA and fees charged by customs brokers for their clearance services. It also explains relevant legislation and the obligations of consumers and retailers involved in international shipments.

“An online purchase that appears affordable can become considerably more expensive once applicable duties, taxes and brokerage fees are added,” said Tahira Dawood, PIAC’s Acting General Counsel. “Simplified, clear, and well-publicized practices related to the customs regime can play an instrumental role in reducing this information gap and enabling consumers to better understand the overall cost of their purchase.”

“As online shopping becomes increasingly popular among Canadians, it is critical that we understand the role of our customs system,” said Joshua Fichman-Goldberg, a report contributor and PIAC’s Public Interest Articling Fellow at the time the report was written. “According to our findings, consumers are confused about fees owed at customs and are surprised when additional sums may be owed upon shipment. Consumers deserve a clearer framework and better explanations from online platforms, retailers, federal government agencies and regulators who oversee the regime.”

The report provides a set of recommendations for federal departments and agencies to improve transparency and consumer understanding of Canada’s customs system. The report also recommends streamlining new digital customs clearance systems to reduce uncertainty for small retailers. PIAC’s research highlights the importance of the customs system beyond revenue collection for monitoring the safety and security of goods moving across borders. These concerns further underscore the need for more awareness of consumers’ rights and obligations when purchasing and shipping goods internationally.

A copy of the report, “Brokering a New Era of Consumer Education on Customs Duties and Customs Brokers” is available here. A French version of this report is available here.

For more information, please contact:

Tahira Dawood

Acting General Counsel

Public Interest Advocacy Centre

1-877-613-PIAC (7422) – tdawood@piac.ca

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