The new EU rules against greenwashing are intended to protect you from vague and unsubstantiated claims. This is necessary. However, for small Fair Trade businesses, increased documentation can also become a heavy task. Here, I explain why WFTO certification of the organisation, not the individual product, can become important for fair trade baskets and other handmade products.
EU rules against greenwashing are necessary
I think most of us know the feeling. A product is called green, responsible, or sustainable, but what do these words actually mean? If there isn't a precise explanation and credible documentation, it becomes almost impossible to make an informed choice.
Therefore, the intention behind the new EU rules is good. From September 27, 2026, the rules against misleading green marketing will be tightened. General environmental claims must be substantiated, and sustainability labels must be based on a certification scheme or established by a public authority. The rules cover labels that highlight environmental or social characteristics, or both.
For you as a customer, this should provide more clarity. For businesses, it also means that every word, every label, and every context must be explainable. This is an important clean-up, but it is not without challenges.
When good requirements become burdensome for small businesses
Large companies often have legal teams, systems, and employees who can work with documentation. Small Fair Trade businesses usually have something entirely different. They have close relationships with producers, many years of experience, and a large part of their knowledge resides in direct human contact.
This does not make documentation less important. But it raises a question that I believe we should take seriously: What happens if responsibility is only recognized when it can fit into an expensive and extensive system?
This is the balance that Molly's Heart wants to help discuss openly.
The risk is that the businesses that helped develop the idea of responsible trade will find it harder to talk about their work. Not because the work has become less responsible, but because the burden of proof becomes heavier. In the worst case, good, direct trade relationships could be pressured in favor of larger and more standardized supply chains. That would be a paradox. Rules intended to create trust must not end up silencing the small players who actually know the people behind the products.
WFTO certifies the organisation, not the product
Here, the WFTO model is interesting. WFTO itself describes its Guarantee System as a scheme that assesses the entire organisation and its supply chain. It is not a product certification. An organisation that passes the audit receives status as a guaranteed Fair Trade organisation and can use the WFTO label according to the organisation's rules.
This is an important distinction. A certified trading organisation can work with producers who do not themselves have WFTO certification, provided they are part of the organisation's supplier monitoring system. The trading organisation must then document and follow up on whether the relevant Fair Trade requirements are being met.
The certification does not automatically transfer from the trading organisation to the producer or the individual product. It creates a documented context around the trade route. This can be a strength for handmade products, where small producer groups do not necessarily have the resources for their own international certification.
How a producer without their own certification can be included
Fair Trade Denmark shows a concrete example. The producer Exposal manufactures hammocks for the German Fair Trade importer Globo. Globo is certified according to the WFTO Fair Trade Standard, while Exposal is part of Globo's Supplier Monitoring System.
Exposal can therefore state that the company is a supplier to Globo and is assessed through Globo's supplier monitoring. But Exposal should not call itself WFTO certified or WFTO approved. That certification status belongs to Globo.
Similarly, a shop can inform the customer that a product comes from a company certified according to the WFTO Fair Trade Standard, and also provide the name of the producer. The crucial thing is that the roles are clear. Who produced the item? Who is certified? And who is responsible for the control? This precision can create more credibility than a grand headline that tries to make the entire product seem certified.
Precision is more important than big words
At Molly's Heart, I would rather explain a little more than promise too much. If an organisation is certified, it does not automatically mean that all parts can describe themselves as certified. And a shop must not use a WFTO label simply because it sells an item from a certified trading organisation. The right to the label follows WFTO's own rules.
The same applies when you look at hand-woven baskets. Words like responsible and Fair Trade must be linked to concrete information about the producer, trade relationship, and control. You can read more in my guide about what fair trade means when choosing a basket.
Precise communication is not boring. On the contrary. When we openly state what we know, who is responsible, and what a certification actually covers, you get a more honest basis for your choice.
Joint control can give small actors a chance
Another possibility in the WFTO model is joint monitoring. If several certified trading organisations purchase from the same producer, they can in some cases collaborate on visits, control, and documentation. Each certified organisation retains its own responsibility, but the work does not necessarily have to be carried out multiple times in almost the same way.
This can make a big difference. Producer visits and control require time, expertise, and money. When serious companies can share relevant documentation, they can limit unnecessary duplication of work without abandoning responsibility.
For small Fair Trade businesses, this can be a way to maintain direct relationships with smaller producers while meeting stricter requirements. It requires clear rules and mutual trust, but the idea is worth pursuing. Responsible trade does not become stronger by repeating the same control again and again. It becomes stronger through good control, clear responsibility, and honest follow-up.
The final WFTO system is still pending
The direction is clear, but not all details are in place. Fair Trade Denmark emphasizes that the final rules for WFTO's upcoming certification system and labels have not yet been published.
Among other things, we still need answers to who may use the upcoming label on products, how information and labels can follow the product through multiple trade links, and how collaboration on control and documentation will be regulated. Therefore, we should be careful not to describe the upcoming model as complete.
It is also important to see how the WFTO system specifically interacts with EU requirements for sustainability labels. Only when the rules are available can we assess the entire chain from producer to importer to shop and customer. Until then, the best approach is precision, documentation, and openness about what we do not yet know.
Fair trade baskets must be able to hold more than paper
I want rules that protect you from greenwashing. But I also want a system where many years of responsible work, direct relationships, and knowledge of producers have value. Documentation should support good trade, not replace it.
For Molly's Heart, responsibility continues to encompass everything from the people behind the products to the materials and the way we talk about them. You can read more about our work with sustainability.
When the final WFTO rules are published, we will examine them thoroughly. Until then, I will stick to something simple: We must state precisely what we can document, be open about the limitations, and never make a certification bigger than it is.