Organisations that are licensed to use the FAIRTRADE Label on their products pay Fairtrade Labelling ANZ a percentage of the sales value of their Fairtrade products. Fairtrade Labelling ANZ is a not for private profit company and these fees are reinvested in the Fairtrade system, to the benefit of licensees and developing country producers, in the following ways:

1. A portion of license fees are used to pay for the monitoring and verification, in Australia and New Zealand, of the guarantees given to consumers with respect to the FAIRTRADE Label to ensure ongoing consumer confidence in the integrity of the Fairtrade Labelling system. This includes:

• desk audit of quarterly reports, 
• inspections of licensed operators,
• reviewing and approving product packaging and promotional use of the FAIRTRADE Label to ensure consistent use, and 
• verification and approval of product supply chains before licensing the use of the Label.

2. A percentage of license fees are paid to Fairtrade Labelling Organisations International (FLO) by Fairtrade Labelling ANZ to assist in covering the costs of: 

• producer development work, 
• certification of producers and traders, 
• review and development of Fairtrade standards and policy, 
• continuous improvements in the global Fairtrade system, 
• the development of new Fairtrade products, and 
• other general costs of running a robust independent third party verification system that inspires the confidence of stakeholders and delivers poverty eradication and sustainable development to producers and communities in developing countries.

3. License fees are also spent on developing and providing point of sale promotional materials on Fairtrade Labelling that are available for use by licensees, e.g. window stickers, brochures, posters etc.

4. License fees also contribute to funding the work of the Fair Trade Association of Australia and New Zealand in educating the public and promoting the FAIRTRADE Label to help grow the market for Fairtrade products and ultimately increase the sales of Fairtrade products in Australia and New Zealand. This includes: 

• maintaining the website with information on fair trade and a searchable database of where consumers can buy Fairtrade Labelled products, 
• organising and coordinating events like Fair Trade Fortnight each year, 
• assisting with negotiations and promotions with big retail chains, and 
• projects that support producers to bring new fair trade products to market.

For a complete breakdown of what you get for your licensee dollar, download this document (pdf, 170kb)