The federal government is eliminating Canada's Office of Consumer Affairs, a move consumer advocates say will weaken protections for Canadians and further erode the country's already limited consumer advocacy sector.Blacklock's Reporter says Industry Canada confirmed the office will be permanently closed as part of a government cost-cutting initiative, affecting six employees and generating annual savings of approximately $2.6 million."Six employees were affected," Industry Canada spokesperson Andréa Daigle said. "The savings associated with the initiative will reach $2.6 million per year."The Office of Consumer Affairs is the last remaining piece of the former Department of Consumer and Corporate Affairs, which existed from 1967 until 1993.Government officials insist the closure will not significantly affect Canadian consumers because provinces and territories oversee most day-to-day consumer transactions."Provinces and territories regulate most of Canadians' day-to-day transactions," said Daigle.Consumer advocacy organizations disagree.In a letter to the House of Commons finance committee, the Consumers Council of Canada described the decision as a major setback for consumer protection efforts."Already in a David and Goliath battle with well-resourced industry forces looking to exploit consumers to boost their profits, this may be the death knell for nonprofit consumer protection and representation in Canada," the council wrote. "It is shocking the Government of Canada would choose this path.".According to the council, Assistant Deputy Minister Etienne-René Massie informed the organization on May 21 that both the Office of Consumer Affairs and the Canadian Consumer Protection Initiative would be wound down effective March 31, 2027.The closure will also eliminate a federal grant program that has provided millions of dollars to consumer-focused organizations.The Canadian Consumer Protection Initiative distributed $7.4 million in its most recent funding cycle to organizations including the Canadian Anti-Monopoly Project, the Canadian Automobile Association, Consumers' Association of Manitoba, Consumers Council of Canada, Credit Counselling Canada, the Public Interest Advocacy Centre and Union des Consommateurs."The impact of this closure cannot be overstated," the Consumers Council wrote MPs. "Consumer representation in the legislative and regulatory process will be severely impacted by this short-sighted decision at a time when it has never been more necessary."The council warned that many consumer advocacy groups already operate on limited budgets and depend heavily on volunteer efforts.The closure marks another chapter in the decline of organized consumer advocacy in Canada.In 2013, the Consumers' Association of Canada, once the country's largest consumer advocacy organization, surrendered its charitable status after struggling financially."We took the decision," then-president Bruce Cran said at the time. "It is much more costly than people realize."At its peak, the association operated with a $4.2 million annual budget, published the Canadian Consumer magazine, maintained a national consumer hotline and tested thousands of products through its own laboratory."Those were the good old days," former national president Nickolas Murray said in a 2013 interview. "For 50 years we were the voice of the consumer in Canada."The closure of the Office of Consumer Affairs is scheduled to take effect by March 2027.
