ABSTRACT

A social label on garments, guaranteeing socially acceptable labor standards and decent working conditions for workers who made them, would be a welcome development for consumers seeking to avoid sweatshop products. But in a free-market economy, social labels exist side by side with other labels and brands, as one consumer choice among myriad other choices, facing the same competitive pressures as its artificially low-priced shelf-mates. Ensuring decent working conditions and good wages for workers by appealing to the altruism of consumers willing to pay a premium for a ‘good cause’ is not an easy task with reliable outcomes. A century ago, the National Consumer League’s White Label program attempted to bring consumer pressure to bear on U.S. sweatshops, but the standards for the label were low and its market share was small. Today’s Fair Trade Certified apparel, recently introduced by Fair Trade USA, faces similar challenges to compete for market share and uphold high standards.