In 1988, in an effort to expand the distribution of fair trade products to mainstream retailers, a Dutch Alternative Trade Organization, Solidaridad, established a creative solution to increase sales while maintaining consumer trust. The organization created a label, called Max Havelaar, which guaranteed that the goods met certain labor and environmental standards. The label, first only applied to coffee, was named after a best-selling 19th century book about the exploitation of Javanese coffee plantation workers by Dutch colonial merchants.

As the Fair Trade movement continued to grow the idea of a certified label spread to other countries participating in the movement until most countries in Europe, the U.S. and Canada had established third-party labelling organizations. In 1997 these labelers created an umbrella organization, the Fairtrade Labelling Organizations International, with the mission to "set the Fairtrade Standards, support, inspect and certify disadvantaged producers and harmonize the Fairtrade message across the movement."

Today 20 independent labelling organizations are members of FLO, in the U.S. TransFair USA is the FLO certifying organization. These organizations certify an ever growing list of commodities including coffee, tea, sugar, fresh fruits, cocoa, rice and vanilla. These products are certified before they are imported into participating markets and are then given the right to use the Fair Trade label on packaging.

However, not all products lend themselves to Fair Trade certification the way farmed commodities do. Although coffee has been Fair Trade's flagship product, sales of fairly traded arts and handcrafts have grown significantly over the past five years. These products are not certified by a member of FLO and do not carry a Fair Trade label.

Instead organizations of retailers and wholesalers who offer goods that adhere to the clearly established Fair Trade criteria have been formed to monitor businesses as opposed to products. For example the Fair Trade Federation in the U.S. is an association of hundreds of businesses that have agreed to follow the principles of Fair Trade for 100% of their inventory.

All this means that, as a consumer, you need to look or ask for one of two guarantees that the product you are thinking of purchasing is indeed Fair Trade. Look for either the FLO or TransFairUSA certification mark on the packaging of the product or, if you are shopping for arts and crafts in the U.S., look for the Fair Trade Federation logo in the window of the business or ask the owner if the shop is a member of the Fair Trade Federation.

Sources: FLO International, Fair Trade Federation, TransFairUSA