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  2. Fragmented Consumer Protection Led to...»

Consumers Council of Canada News

Fragmented Consumer Protection Led to Call for Consumer Advocate

by Staff | Apr 24, 2023 | Action, Beware, Right-Information, Right-Privacy, Right-Representation

The Federal Government response to an Access to Information and Privacy (ATIP) request includes a strong case for the establishment of the Canadian Consumer Advocate, some previously disclosed information about how the Advocate’s role could be expanded, but no information about why the initiative was abandoned after the 2021 election.

The April 2023 response to an August 2021 request from the Consumers Council of Canada was a 97-page PDF, of a variety of government documents, letters, briefing notes and memos. In most cases the background information documents – many marked “Secret” – provided contained sections titled ‘proposals’, ‘actions’ and ‘deliverables’ that were entirely redacted.

The two most revealing components were an undated presentation titled “Empowering Canadian Consumers – Draft for internal discussion”, and a undated document “Scoping the Path to the Consumer Advocate”.

The presentation identified the fragmentation of consumer protection into issue or sector specific segments, and that these trends “if left unchecked will diminish consumers’ trust in the marketplace.” It noted the Office of Consumer Affairs “has historically been a focal point for consumers seeking access to information and navigational support to submit complaints. However, over time, resources have been eroded and functions have been scaled back or in some cases distributed across departments.”

However, sections outlining future plans and next steps were redacted.

The ‘Scoping the Path’ document similarly has all proposals, activities and deliverables redacted. However, its background section includes a frank assessment of the circumstances that led to the 2019 proposal for a national Consumer Advocate in mandate letters to cabinet.

“Canada’s consumer protection eco system is complex — involving multiple federal departments, agencies and provincial and territorial governments. The last 15 years have seen a fragmented federal approach to addressing consumer protection that is sector-based focused primarily on the dynamics of industry, and requires Canadian consumers to navigate complex and cumbersome systems for redress. This fragmented approach leaves Canadian consumers vulnerable, as it risks mandate gaps and overlaps in protection regimes; impedes coordinated and nimble government responses to emerging issues; makes access to redress complicated and inefficient; and lacks a focused approach to building consumer awareness and education.”

The 97-page document includes two other lengthy components. One is the Consumers Council of Canada’s position paper Time for a Real Federal Consumer Advocate. The paper prescribed an expanded role for the Advocate, proposing numerous roles and responsibilities that go beyond the past platforms and mandate letters.

The ATIP response also included a June 2021 briefing memo from assistant deputy minister Frances McRae to the deputy minister of Innovation, Science and Economic Development titled “For Approval: Next Steps on Consumer Agenda,” which sought approval to “respond to the needs of Canadian consumers more broadly” as they worked to shape the mandate of the proposed Canadian Consumer Advocate.

That memo was included in an earlier response to an ATIP request. It recommends including other departmental representation, including Environmental and Climate Change Canada and Health Canada. The draft letters to those organizations, to be sent by the deputy minister, included this passage:

“We also recognize that federal responsibilities in consumer protection and awareness extend beyond banking, telecommunications, and transportation. This is why I am reaching out to you, as well as to other counterparts in federal departments and agencies with a mandate in consumer protection and awareness, to facilitate a whole-of-government approach that will empower Canadian consumers.”

The Advocate position was included in the 2019 mandate letter to the (then) Minister of Innovation, Science and Industry, to “ensure a single point of contact for people who need help with federally regulated banking, telecom or transportation-related complaints.”

A commitment to the Canadian Consumer Advocate has not been included in the prime minister’s subsequent mandate letters to cabinet ministers.

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