Some products, like batteries and hand sanitizers, were subject to the eco fee. Some products, like batteries and hand sanitizers, were subject to the eco fee. (Pras Rajagopalan/CBC)

The Ontario government will scrap its controversial eco fee on Tuesday in a bid to quell consumer confusion and frustration from major retailers.

CBC has confirmed that Environment Minister John Gerretsen will announce that the fees retailers started charging on thousands of new products on July 1 will be eliminated.

A source said a waste-diversion program will continue.

Canadian Tire announced Monday that customers wouldn't be charged eco fees starting Tuesday. The company says the program is too complex and was mishandled by both government and businesses.

The government gave Stewardship Ontario the power to collect fees to fund a recycling program that diverts potentially hazardous items — such as fire extinguishers, household cleaners and paint — from Ontario's landfills.

But there was no public warning that the eco fee, which was introduced in 2008, would be slapped on thousands of new items this month.