FED: Oxfam Freetrade claims misleading consumers: IPA

AAP General News (Australia)
08-04-2008
FED: Oxfam Freetrade claims misleading consumers: IPA

CANBERRA, Aug 4 AAP - Oxfam Australia has been cautioned by the consumer watchdog after
a complaint was made about its promotion of Fairtrade certified brands.

Free market think tank, the Institute of Public Affairs, had complained to the Australian
Competition and Consumer Commission saying Oxfam had been misleading consumers about the
brands helping farmers in developing nations.

Numerous studies showed that fair trade was not helping lift people out of poverty,
as claimed by Oxfam, the institute said.

The commission, in a letter to the institute, said it recognised some material existed
in the marketplace where Oxfam repeated fair trade statements that contained absolute
claims.

Oxfam had been told such claims left it at risk of contravening the Trade Practices
Act, the commission said.

The institute says Fairtrade is a scheme designed to make developed country consumers
feel good about themselves, with questionable benefits to developing country farmers.

"Fair trade does not serve the interests of the poor," director of the institute's
free trade unit Tim Wilson said.

"Only free trade sustainably lifts people out of poverty."

AAP srj/rl/jt/cdh

KEYWORD: ACCC OXFAM

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