In order for a product to be considered as belonging by the fair trade definition, it has to have what is called a fair trade certification. If fair trade clothing and products have this certification then it tells consumers that the seller is committed to the concept of fairtrade. It also makes the consumers trust the product more and also increases the likelihood of the conscious consumer to purchase the items. There is no need therefore for consumers to have to do research regarding the product because they know that they can put trust in the act because of the Fair Trade Certification.
Fair Trade Certification
Aside from giving consumers trust, a certification allows products to be differentiated from others. This in turn gives them the much needed competitive advantage over other commercial products in the market. Competitive advantage because it gives everyone involved their own brand, so to speak. This means that from the producers and workers down to the wholesalers and the retailers, everyone gets to enjoy the benefits. Without this label, these groups would have to contend with multinational companies who spend a large amount of money just to create a brand that consumers will identify and buy.
Labelling or branding further helps in creating standards for the different products. Think of it as an ISO Certification but instead of companies it is put into products. One good thing about certification is that it is not rigid like the others. The standards set are flexible and can be changed when the need arises. Thus if there are changes in the market, the standards are revised in order to keep it updated and in line with the latest trends in fair trade.
There is no one specific group or agency that hands out a fair trade certification. In the U.S., certification is given out by the group TransFair USA. Fair Trade organizations like TransFair USA is in fact the one in charge of certifying products in the North America region. The group certifies products such as chocolate, tea, coffee and other agricultural goods. The group even certifies processed food like canned juice, energy drinks, chocolate and ice cream, among others.
In Europe, the task of certifying products is done by FLO-CERT GmbH. Working hand in hand with FLO International the certifying group gives out certification to Fair Trade products in more than seventy nations worldwide.