Consumers’ Federation of Australia on life-support, urges government action to protect consumers during cost-of-living crisis

Consumers' Federation of Australia Developing and promoting the consumer interest

The Consumers’ Federation of Australia (CFA) urgently calls on the Australian government to fund its work as the peak body for consumers in the forthcoming budget.  

For over 50 years, Consumers’ Federation of Australia has been a vital safeguard against corporate misconduct, ensuring fair treatment and protections for consumers.  

The peak body for consumer organisations, CFA is responsible for coordinating and leading policy and advocacy in the consumer interest.  

Now, with funding running out, this crucial watchdog may be forced to close its doors—leaving Australians more vulnerable to unfair business practices, said Chair Dr Gareth Downing. 

“CFA is on life support, urgently needing government intervention to survive. Without it, vital reforms to strengthen product safety, promote competition, and crack down on unfair trading practices—costing Australians millions—could come to a halt.” 

CFA also ensures integrity in key industry processes by supporting the appointment of independent consumer representatives to industry code development, advisory and compliance committees across a variety of industries including financial services and travel.  

“This work will cease should CFA close, leaving consumers unrepresented in these processes, and industry organisations free to select who they would like to sit on these critical integrity bodies,” Dr Downing continued.  

“This will see poorer consumer protections, weaken self-regulatory and co-regulatory processes, and undermine effective competition.”  

“At a time when the cost-of-living crisis is squeezing households, protecting consumers from scams, price gouging, and corporate misconduct has never been more critical.” 

“Without urgent government support, a key advocate for consumer rights could be lost.” said Dr Downing.  

With consumers contributing an estimated $1.3 trillion to GDP in 2023, funding an effective peak body is consistent with consumer’s contributions to our nation’s success. The Australian, state and territory governments collect billions in revenue from consumption taxes, with the GST alone forecast to contribute $92.1 billion in FY24-25. 

CFA looks forward to engaging with government on the need to advance reforms in the interests of consumers through improvements to product safety laws, strengthening competition and stopping unfair trading practices. 

Quotes attributable to Consumers Federation of Australia Chair, Dr Gareth Downing 

“After more than a decade of unfunded representation by CFA, it’s clear that industry is dominating public policy processes, leading to poor regulation, uncompetitive markets and higher prices for Australian consumers.”  

“Australians know that they are getting a raw deal when they go for groceries, get on a plane and pay their bills. This cost-of-living crisis is driven not just by ‘international factors’ but by more than a decade of poor policy decisions made without the consumer interest in mind – which is what happens when you fail to fund the peak consumer body.”  

Quote attributable to Consumer Policy Research Centre CEO, Erin Turner 

“The closure of the Consumers Federation of Australia would be a devastating blow to consumers across the country. CFA has been an indispensable advocate for fair markets, and its loss would leave a significant void in protecting everyday Australians from corporate exploitation. At a time when consumers are already under immense financial pressure, we can’t afford to lose this vital voice.” 

Quote attributable to Choice CEO, Ashley de Silva 

“The role of consumer advocates has never been more important. Australians?deserve strong consumer voices to reset the power imbalance between businesses and consumers. The Consumers Federation of Australia ensures we have a thriving consumer movement, and consumers will be worse off without it.” 

Quote attributable to Energy Consumers Australia CEO, Brendan French 

“CFA has been supporting consumer voices in innumerable government and industry decisions across the economy for decades, operating on a shoestring.? That’s not enough at a time when household budgets are under such pressure, and we need markets to operate effectively to minimise prices and treat consumers fairly.? It’s time to provide CFA with the resources to ensure the consumer voice is as strong as possible.” 

Quote attributable to Australian Communications Consumer Action Network CEO, Carol Bennett 

It is critical for Australian consumers to have a strong voice in the fundamental decisions that affect them. It would be a blow to good governance if CFA were to close after half a century of proudly representing interests of Australians. I encourage the government to fund this important peak organisation.” 
 
Quote attributable to Financial Counselling Australia co-CEO, Dr Domenique Meyrick  

“CFA plays a crucial role in ensuring consumer interests are represented in key decisions that impact them. With people facing financial pressures from all directions, a strong and coordinated consumer voice is more essential than ever. Adequate funding is critical to sustaining this advocacy.” 

Quote attributable to Consumer Credit Legal Service WA Principal Solicitor, Roberta Grealish 

“The CFA’s membership comprises of consumer advocates with expertise across numerous industries.? As such, it provides a single, coordinated rich source of experience and knowledge for consultation on consumer policy and law reform.? It would be counter-intuitive for a government seeking independent consumer representation for various advisory panels and consultative committees to allow the critical work of CFA to remain unfunded and at risk of closure.? The funding risk faced by the CFA is a risk to the integrity of key industry and government processes, and ultimately a risk to the fair treatment of Australian consumers.”  

Quote attributable to Consumer Action Law Centre CEO, Stephanie Tonkin 

“In the midst of a cost-of-living crisis, business and government desperately need the expertise and voice of consumer advocates more than ever.” 

“I urge the Australian Government to continue to fund this vital resource that provides crucial knowledge, informs government programs and protects consumers.” 


The full submission is available here

For media inquiries contact CFA via chair@consumersfederaton.org.au or 0414 396 022. 

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