Feds Just Defunded the Groups Protecting You From Junk Fees and Fraud

The federal government is cutting the Office of Consumer Affairs and pulling funding from the consumer advocacy groups that depend on it, according to reporting by Do Not Pass Go.

An email obtained by Do Not Pass Go confirmed the OCA and its Canadian Consumer Protection Initiative will be “wound down by March 31, 2027” as part of the spending review announced by Prime Minister Mark Carney last fall.

“The Office of Consumer Affairs (OCA) promotes the interests and protection of Canadian consumers. Well-informed and confident consumers help stimulate competition and innovation in the Canadian marketplace,” explains the government organization’s website. Well that’s going to be now out the window.

Groups like the Public Interest Advocacy Centre, Consumers Council of Canada and Union des consommateurs are all affected. The CCPI handed out more than $7.3 million in its latest round to fund everything from seniors fraud protection to junk fee tracking and digital privacy. Groups like the PIAC have been strong consumer advocates against predatory telecom pricing and practices over the years.

Neil Hartung, a lawyer with the Consumers Council, wasn’t impressed with the savings argument. “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,” he said. “If you disempower consumer voices, you’re going to get the market that you deserve.”

The shutdown affects six employees and saves $2.6 million a year by 2028-2029. Current projects continue until the March 2027 deadline.

Not everyone is tightening their belt in Ottaw, however. The Canadian Taxpayers Federation says Prime Minister Mark Carney spent nearly $200,000 on luxury in-flight meals across just three flights.