What is true about fair trade?

Answer 1

The workers who produced these goods are paid more money.

Answer 2

that it's fair.

Answer:

Fair trade is an attempt to promote higher or fairer wages among third world and second world countries where the going rate of pay is much lower than in the first world. The argument is that a higher percentage of the money paid for final sale of the product should go to the actual workers and producers. The lower wages the workers would get otherwise would sometimes be akin to slavery. This is also supposed to forbid the trade of any products produced wholly or in part by slave labour.

Arguably, it is not completely fair. Fair trade is often used as a marketing label as an excuse to charge higher prices for moral suasion. Many products are mislabeled fair trade, as there is often little chance the offender will be caught.