Fair trade" goods have become popular as some people are willing to pay more to know that the goods come from workers paid a decent price for their efforts. However, some retailers who sell fair trade goods mark them up substantially more than non-fair trade goods.
One study showed that coffee growers got an average of 44 cents a pound more for fair trade coffee, but the coffee at retail was marked up an additional $3.46 per pound. At one supermarket chain, fair trade bananas that cost an extra 3.6 cents per pound were marked up four times the price of non-fair trade bananas.
Fair trade goods are claimed to be a form of social responsibility. Is that true if it just means higher profit margins?