Canada is the latest country to come under fire for its branded merchandise budget.

The Canadian bureaucracy spent over $13 million on promotional products since 2022, according to government documents requested by Conservative MP Michelle Rempel Garner. Across all departments, more than $800,000 of that was spent on bags, hats and socks.

The Royal Canadian Mounted Police topped the list of spenders with over $4 million worth of promo purchases, but claimed no records existed detailing what exactly was bought, The Toronto Sun reported.

Canadian Heritage, the department responsible for policies and services related to arts and culture, followed with more than $2 million worth of promo purchases.

  • That included spending $1.7 million on Canadian flags, $143,000 on Canadian flag lapel pins, $14,000 on Canadian flags for desks and $16,000 for pins and cards with words of encouragement for Canadian athletes competing in the 2024 Paris Olympics.
Anyone who claims there’s no fat to cut needs to be reminded that the government is spending millions of dollars on branded merch.”

Franco Terrazzano

Federal Director, Canadian Taxpayers Federation


Other branded merch purchased by various departments included Stanley and Yeti drinkware, T-shirts, leather journals, notebooks, hockey pucks, lip balm, air fresheners, stress balls and more.

Attack On Merch

The Canadian Taxpayers Federation, a federally incorporated, not-for-profit citizens’ group, publicized the data, labeling the purchases as a “waste of money.”

“It’s like the government had a contest to see which department could come up with the dumbest way to spend taxpayers’ money and they all won,” said Franco Terrazzano, federal director of the CTF.

“[Prime Minister Mark] Carney said he’s going to cut waste and if he’s serious he would put the government’s promotional merch spending spree on the chopping block. Anyone who claims there’s no fat to cut needs to be reminded that the government is spending millions of dollars on branded merch.”

When governments, institutions or private companies choose to invest in quality promotional items… they’re investing in relationships, recognition and reputation.”

Jonathan N. Strauss

CEO/President, PPPC

Jonathan N. Strauss, CEO and president of Promotional Product Professionals of Canada, argues that the use of branded merch – whether as a tool for showcasing Canadian identity abroad or as a meaningful gesture to attract and retain talented employees – is a strategic investment rather than a splash of unnecessary expense.

“At PPPC, we believe that the Canadian promotional products industry plays a vital role in helping organizations of all sizes and sectors bring their values, culture and brand promise to life in tangible, memorable ways,” Strauss says.

“When governments, institutions or private companies choose to invest in quality promotional items, they’re not just purchasing a logo-stamp. They’re investing in relationships, recognition and reputation. That investment grows when the items reflect Canadian ingenuity, ethical production practices and long-term sustainability.”

Aaron Moscoe, CEO of Markham, Ontario-based TPS Promotions & Incentives, PPAI 100’s No. 90 distributor, adds that the conversation should focus on ROI for the government, and by extension, to taxpayers. 

Aaron Moscoe headshot
If for every dollar spent, there is greater than $1 in return, it was money well spent.”

Aaron Moscoe

CEO, TPS Promotions & Incentives

“The judgement of whether the money should be spent is dependent on whether or not the return is greater than the cost, just as any organization should be managed,” Moscoe says. “If for every dollar spent, there is greater than $1 in return, it was money well spent. If not, then the spend should absolutely be re-evaluated.”

Global Issue

Terrazzano’s rhetoric should sound familiar to promo pros in the U.S. after the SWAG Act was reintroduced this year.

The proposed legislation, first authored by Iowa Sen. Joni Ernst in 2019, would make it illegal to use federal funds on promo products. PPAI opposed the SWAG Act and leaders met directly with Ernst during the Association’s Legislative Education & Action Day in April to discuss the potential harm the bill could cause, not only to the promo industry but to the federal agencies that rely on merch to communicate vital information to the public.

“We left with confidence that our elected officials understand and support the need for balanced strategies that protect fair trade without compromising our industry’s incredible ability to spread joy around the world,” said PPAI President & CEO Drew Holmgreen after the event.

  • As part of PPAI’s “promotional products work” message to leaders on Capitol Hill, the Association shared several case studies of successful real-world promo projects for federal and state agencies.
  • Ernst has since announced she won’t seek reelection next year when her term ends, leaving the future of the SWAG Act uncertain.


Across the pond, the United Kingdom banned spending on government-branded merch earlier this year.

  • The U.K. government claims that “thousands” of pounds have been spent in recent years on products with department slogans or logos. It claims that money could be used for “strengthening our borders.”
  • A qualification is made that such merchandise will be permitted “only when essential for delivering the government’s agenda, for example, in overseas trade and diplomacy.”