The Ontario government has unveiled a new, scaled-back waste diversion program to replace the unpopular eco fees applied to thousands of products this summer.

"We listened to a very loud and clear message that the program that was designed and rolled out did not make sense to consumers," Environment Minister John Wilkinson said in a news conference Tuesday afternoon.

"People are willing to do the right thing, but they want a program that's simple, that's the least expensive way to solve the problem and that makes sense."

The province pledged to permanently scrap the fees and instead provide funding for municipalities to properly manage, recycle and dispose of toxic items such as fire extinguishers, batteries and pharmaceuticals.

The minister also vowed to make existing programs more transparent and accountable, by assigning a team to investigate "incorrect or misleading charges" levied by retailers; adding consumer representation to the boards running the programs; and requiring regular third-party audits.

The eco fees, meant to fund a provincial waste diversion program, were quietly attached to some 9,000 household items on July 1, the same day the harmonized sales tax took effect.

Retailers hit consumers with the fee instead of absorbing the recycling costs, setting off a wave of public outrage.

Less than a month after the fee debuted, the province agreed to remove the charge and review the program.