The Fairtrade Foundation is a registered charity, but aims to operate as a sustainable business. As such, the Fairtrade Labelling certification system is largely financed through fees paid by the final commercial operator in the supply chain, who pays a licence fee for use of the Fairtrade and Fairmined dual stamp on certified products. In the UK, the Fairtrade Foundation receives about 75% of its income from these fees and is responsible within the national market for:
- Certification - verifying that products are traded in accordance with the Fairtrade and Fairmined Standards and the Standards for UK Operators.
- Maintaining relationships with licensees, retailers, producers and other key business partners
- Raising awareness of the dual stamp and dual label among consumers.
- Working with our partners in the international Fairtrade Labelling network and ARM to develop and review standards.
The Foundation's policy on licence fees is to operate a system that is transparent and consistent, and that balances the need for the Foundation's work to be adequately resourced with the objective of maximising opportunities for Fairtrade producer organisations. It is therefore important that the fee is set at a realistic level but that it does not act as a barrier to entry or a disincentive to increase sales.
Licence fee rates are fully detailed in part 2 of the Standards for UK Operators.
Licensees are required to submit sales reports on a quarterly basis, from which the licence fee will be calculated. The licence fee for gold products is 1.7%. This is calculated on the total cost price of a finished product multiplied by a factor of 1.5.
Reduced rates:
The Foundation offers licensees who, by applying the Fairtrade and Fairmined dual stamp to all products that they sell in categories covered by Standards, demonstrate a significant and long-term commitment to Fairtrade, a reduction of 50% in the licence fee. Please contact the Fairtrade Foundation for more information.
As a certification label, the Fairtrade and Fairmined dual stamp and dual label can only be used in direct relation to products that are certified in accordance with Fairtrade and Fairmined Standards. The dual label can also be reproduced on printed promotional materials to encourage people to purchase certified products. In all cases, approval for the use of the dual label, the words Fairtrade and Fairmined, and messaging relating to Fairtrade and Fairmined must be approved by the FAIRTRADE Mark Management team prior to printing or publication.
In order to apply the Fairtrade and Fairmined dual label correctly to materials, businesses must follow the appropriate guidelines. To request a copy of the Trademark Usage Guidelines for Gold and Associated Precious Metals (available to companies with a signed valid Licence Agreement with the Fairtrade Foundation) please email manuals@fairtrade.org.uk with the following information:
- product category you are creating artwork for
- your company name
- contact details
- your company FLO-ID.
Downloadable Gold promotional materials:
We have created a set of downloadable gold promotional materials which are available to licensees and retailers of licensees' certified products. More information can be found on the following password protected link.
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These materials must only be used in relation to the certified products which appear on a company's License Agreement and are stamped with the Fairtrade and Fairmined dual stamp. It is the responsibility of the licensee and/or the retailer to ensure that these materials are never used in the wrong context.
Approval of product packaging and promotional materials (including websites):
All new product packaging and promotional artwork must be submitted to artwork@fairtrade.org.uk for approval. To avoid any unnecessary delays please ensure three weeks lead time is built into your critical path from first submission to approval.
The Fairtrade and Fairmined dual label is available to licensees as an Illustrator EPS file, please e-mail artwork@fairtrade.org.uk or call 020 7440 7629 providing the information listed in the i-iv points above.
PLEASE NOTE: Artwork cannot be approved unless a signed valid Licence Agreement is in existence and a product application has been approved by the Certification team which covers the product(s) in question. In addition, artwork and use of the Fairtrade and Fairmined dual label is not approved and must not be used unless you have received written confirmation of approval from the Fairtrade Foundation.
All licensees are responsible for ensuring that they are compliant with the Fairtrade Standards for UK Operators. The Certification team is able to provide guidance on the requirements of the Standards, including the Self Assessment Questionnaire.
The Fairtrade Foundation monitors compliance with the Fairtrade Standards for UK Operators through assessment of Flow of Goods reports, product applications, self assessment questionnaires and physical audits. If a licensee is found non-compliant with the Standards at a physical audit, a non-compliance is raised giving the licensee a timeframe within which to rectify this.
Each licensee is required to:
- submit to the Foundation reports of their Fairtrade and Fairmined transactions, normally quarterly.
- submit product information for approval prior to launching, as well as informing the Foundation of any amendments made to already certified gold products.
- complete the Self Assessment Questionnaire
- be available for physical audit against the Fairtrade Standards for UK Operators and correct any non-compliances found within the agreed timeframe.
The Fairtrade Foundation, FLO-CERT and other Fairtrade International Labelling Initiatives, where relevant, together ensure that Fairtrade Standards are followed at each step of the supply chain from the Fairtrade and Fairmined producer group (the mining organisation receiving the Fairtrade price and/or premium) through to the licensee responsible for applying the Fairtrade and Fairmined dual stamp to the consumer-ready product. To maintain the integrity of the Fairtrade system, any critical non-compliances with the Fairtrade Standards can result in suspension or termination of a company's Licence Agreement.
The licence to use the Fairtrade and Fairmined dual stamp is managed by different Fairtrade Labelling Initiatives in different countries, each of whom have an understanding of their own market. It is therefore important for licensees to inform the Foundation in advance of any new market they wish to sell wholesale product into. The Foundation can then, where required, review this with the appropriate Labelling Initiative on your behalf. Packaging and promotional materials may also require amendments for overseas markets. Please contact the Certification team for more information, licensing@fairtrade.org.uk