The Consumers’ Federation of Australia has warned it may close if the federal government fails to address its funding in the upcoming budget.

Chair Gareth Downing says the consumer advocate umbrella group, comprising more than 30 members including Choice and Financial Counselling Australia, has had repeated cuts to its funding.  

“CFA is on life support, urgently needing government intervention to survive,” Dr Downing said.

“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.”

The federation serves as a peak body for consumer organisations to co-ordinate advocacy and appoint independent consumer representatives to code development and advisory and compliance committees. 

Dr Downing says if it shuts, consumers will be unrepresented in these processes, damaging the integrity of member bodies.

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

“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.”  

Choice CEO Ashley de Silva has also sounded the alarm, saying the role of consumer advocates “has never been more important”.  

“Australians deserve strong consumer voices to reset the power imbalance between businesses and consumers,” she said.

“The Consumers Federation of Australia ensures we have a thriving consumer movement, and consumers will be worse off without it.”

Dr Downing says the federation is looking to engage with the government on funding requirements, plus reforms around product safety laws, unfair trading practices and strengthening competition.