Fairtrade Labelling Organisations International (FLO) is the international organisation responsible for setting and maintaining the Fairtrade standards that apply to producers and traders. Whilst FLO sets the standards, a separate international certification company (FLO-CERT) regularly inspects and certifies producers and traders against these standards.
Producers
The two main types of producer organisations that Fairtrade works with are:
1. small farmers’ organisations commercial farms and
2. other companies that permanently employ hired labour.
FLO has developed distinct generic standards for each group that relate to their different ownership structures and other characteristics. Producer organisations must meet the requirements of these standards to become certified and are audited against these standards annually. FLO-CERT is responsible for the inspection and certification of producer organisations and traders against Fairtrade standards.
Traders
As well as producer certification, for a product to carry the FAIRTRADE Mark all the traders in the supply chain must submit reports on their purchases and sales of Fairtrade commodities to FLO-CERT. Internationally-based importers and exporters report directly to FLO-CERT, whose trade auditors also conduct on-site inspections.
Products
For a product to carry the FAIRTRADE Mark in the consuming country there must be an organisation responsible for the Licence Agreement with the Labelling Initiative of that country. In most cases this is the manufacturer or brand owner.
This company pays a licence fee for use of the FAIRTRADE Mark on certified products to the Labelling Initiative where the product is sold.