Fair Trade Fakes? Don't Believe All The Labels
BOSTON (CBS) - Products labeled as fair trade are becoming more popular on store shelves.
They're supposed to be made in a manner which promotes a positive work environment while respecting the environment.
Unfortunately, many shoppers are paying more for products that are mislabeled and not really made in any socially conscious manner.
The number of American companies looking for fair trade certification jumped 50-percent last year.
Megy Karydes of world-shoppe.com explained, "What's going on right now in the fair trade industry is what we're calling 'fair washing'. It's a play off on the concept of 'green washing', where some companies are claiming to be fair trade and may not necessarily be fair trade."
WBZ-TV's Paula Ebben reports
Concerned shoppers can search for logos, such as the Fair Trade Federation and Fair Trade USA for some assurance.
But even those labels can't truly guarantee your money is being spent the way your conscience wants, according to Renee Bowers of the Fair Trade Federation.
'There are no penalties because there is not legal governing body for fair trade so to speak," she added.
In some cases, a company may have one fair trade product among dozens of others, but still promote the entire brand as fair trade.
They may also use just a token amount of fair trade ingredients.
"Having 2-percent raw materials in your bath and body product does not make you a fair trade product, but using that label on your packaging may give consumers the false impression that their products are fair trade," explained Karydes.
Shoppers like Sarah Griffis are upset to hear this news.
"I would feel definitely cheated if I found out something I bought that I believed was fair trade was not," she said,
Consumers should be wary, said Karydes.
"Seek out those products that have those labels, but ask more questions. It's not as easy as taking it on face value."
The most popular fair trade products include coffee, flowers, produce, and some health and beauty aides.
