I’m always skeptical of movements such as ‘fair trade coffee’ which seem to be a protectionist racket that extracts higher rents from consumers to benefit some businesses, employees of the movement and so forth. There is little evidence that the actual poor producers of products receive any benefit – in many cases they are harmed.
For these reasons I don’t buy any product labelled as ‘fair trade’.
This is yet another of these movements which seek to extract more from the consumer to make him or her feel ‘ethical’. It is a form of selling indulgences.
The Ethical Clothing Australia website states that the organisation
… is a joint business–union initiative. It is governed by an independent and not-for-profit committee of management, Homeworker Code Committee Inc, with representation from major stakeholders in the textile, clothing and footwear industry.
Yet have a look at the bottom of the page – it has been funded by the Australian Government. Another opportunity for the Abbott Government to make some savings.