The Pros and Cons of Eco Labels in the Fashion Industry

Collage with a road sign that says "eco friendly", birds, happy earth, greenery and a sky background

Have you ever looked at the tag on your clothes and seen a little symbol or sticker that says things like Fairtrade, B Corp, or GOTS? Those tiny logos are called eco labels. They are a big deal in the fashion world today.

Eco labels help tell people if their clothes were made in a way that is good for the planet and fair to the people who made them. They show that a company is trying to be responsible and care about the environment.

But even though eco labels sound great, they aren’t perfect. Some are hard for brands to earn, some are confusing, and sometimes companies use them the wrong way to make themselves look better.

In this blog, we will talk about what eco labels are, their pros and cons, and look at some examples of popular eco labels you might see on your clothes.


What Are Eco Labels?

Eco labels are special tags or symbols that tell shoppers that a product meets certain environmental or ethical standards. In simple words, an eco label means a product is made in a more eco-friendly or fair way than regular products.

For example, an eco label can mean:

  • The fabric was grown without harmful chemicals.

  • The workers who made the clothes were paid fairly.

  • The factory used less water or energy.

  • The company recycles or reduces waste.

Eco labels help shoppers see which clothes are more sustainable. They make it easier to choose items that are better for the Earth and for people.

In fashion, there are many types of eco labels, and each one means something a little different. Let’s look at some examples.


Examples of Eco Labels in Fashion

Here are a few eco labels that you might find on clothing and what they stand for:

1. Oeko-Tex Standard 100

This label means that the fabric has been tested for harmful chemicals. If a shirt or pair of pants has this label, it means the material is safe for your skin and won’t cause allergic reactions. 

2. Better Cotton Initiative (BCI)

The Better Cotton Initiative works with farmers to help them grow cotton in ways that use less water and fewer pesticides. It also helps improve the lives of cotton workers. When you buy BCI cotton, you’re supporting farms that are learning to grow cotton more responsibly.

3. B Corp

B Corp is a label for companies, not just clothing items. It means a brand has met high standards for both social and environmental responsibility. Brands that are B Corp certified promise to care about people, the planet, and profit equally. Companies like Patagonia and Athleta are famous B Corps.

4. Fairtrade

The Fairtrade label means the people who grew or made the materials for your clothes were paid fairly and worked in safe conditions. It focuses on helping workers in developing countries earn fair wages and improve their communities.

5. GOTS (Global Organic Textile Standard)

The GOTS label means the product is made from organic fibers, like organic cotton, and that the whole process — from growing the cotton to sewing the shirt — follows strict environmental and social rules. GOTS is one of the most trusted labels in sustainable fashion.


The Pros of Eco Labels in Fashion

Now that we know what eco labels are, let’s look at why they’re so important and how they help make fashion better for everyone.

1. Eco Labels Show That Products Follow Ethical and Sustainable Standards

When a product has an eco label, it shows that it meets specific rules to protect people and the planet. These rules, or standards, can include things like:

  • Using organic or recycled materials

  • Reducing pollution

  • Treating workers fairly

  • Saving water and energy

For example, if you see a GOTS label, you know that the clothing was made using organic fibers and that the workers were treated fairly. It helps you feel good about what you buy because you know it was made with care.


2. Eco Labels Encourage Sustainable Production

Eco labels don’t just help shoppers — they also push companies to do better.

If a company wants to earn an eco label, it has to change how it makes its products. This might mean:

  • Using less harmful dyes and chemicals

  • Paying fair wages

  • Recycling water

  • Using renewable energy in factories

This process can make a big difference. When more companies try to earn eco labels, the whole fashion industry becomes cleaner and more responsible.

For instance, cotton farmers who work with the Better Cotton Initiative learn how to save water and protect their soil. Over time, these small steps add up to a huge positive impact on the planet.


Woman looking at clothes while shopping

Image by Ron Lach via Pexels.com

3. Eco Labels Help Shoppers Be More Conscious of What They Are Buying

Before eco labels became common, most people didn’t know how their clothes were made. Today, these labels help people think about where their clothes come from and who made them.

When shoppers see eco labels, they are reminded to make better choices. They might choose an organic cotton T-shirt over a cheaper one that’s made with harmful chemicals.

By choosing certified products, shoppers can support brands that care about sustainability. This kind of conscious shopping helps create a chain reaction — more demand for eco-friendly products means more companies will want to make them.

It’s a small change that can make a big difference.



4. Eco Labels Build Trust Between Consumers and Companies

Eco labels can also help build trust. Many people don’t believe brands when they say they are “eco-friendly” or “green.” But when a product is certified by an independent organization, that claim becomes more believable.

For example, when you see the Fairtrade label, you know that the production of the product was checked by experts, not just claimed by the company itself. That makes customers feel more confident that the brand truly cares and is doing what it claims to do.

When companies are transparent and honest, shoppers are more likely to stay loyal to them and tell others about them. This trust is very valuable in today’s fashion market.

The Cons of Eco Labels in Fashion

While eco labels have many good sides, they also come with challenges. Let’s take a look at some of the main problems that make eco labels less perfect than they seem.



1. Getting Certified Can Be Complicated and Expensive

One big problem with eco labels is that it can be difficult, time consuming, and costly for brands to earn them.

To get certified, a company has to fill out long forms, pass inspections, and follow many detailed rules. These steps are important for keeping the process honest, but they take a lot of time, money, and effort.

For big brands like Nike or H&M, this might be manageable. But for small, local designers or startups, it can be too expensive. Some small businesses that are doing things sustainably may not be able to afford certification, even if they are just as eco-friendly as bigger brands.

So, while eco labels are meant to make the fashion world fairer, they can sometimes leave smaller businesses behind.


2. Greenwashing: When Labels Are Used the Wrong Way

Another big issue with eco labels is greenwashing. This happens when companies pretend to be more eco-friendly than they really are.

Some brands create their own fake “eco” logos or use vague words like “green,” “eco-friendly,” or “natural” without proving anything. These labels look official, but they don’t actually mean much.

This tricks shoppers into thinking they are buying something good for the planet when they might not be.

For example, a company could say its clothes are made from “sustainable cotton” even if only a tiny percent of the cotton is actually sustainable. That’s misleading and unfair to customers and to brands that are truly doing the work.

Greenwashing makes it harder to trust eco labels and it shows why clear and honest certification is so important.



3. Too Many Labels Can Be Confusing

If you’ve ever shopped for eco-friendly clothes, you might have noticed there are a lot of different labels. From Oeko-Tex to Fairtrade to GOTS, each one means something different.

While variety is good, it can also be really confusing.

One label might focus on chemicals, another on workers’ rights, and another on materials. Most shoppers don’t have time to learn what all of them mean, so they might just give up trying to understand.

This problem is sometimes called label overload. When there are too many options, people stop paying attention altogether.

If shoppers don’t understand the difference between the labels, it’s hard for them to make smart choices. That means eco labels might not have as much power to create real change.

Machine picking up clothing landfill

Image by Trashy via substack.com

4. Each Label Only Focuses on One Issue

Even though eco labels help, most of them only cover one specific topic.

For example:

  • Oeko-Tex looks at chemical safety.

  • Fairtrade focuses on fair pay and worker conditions.

  • BCI promotes better cotton farming.

  • GOTS checks for organic materials and some labor rules.

But a truly sustainable product should take everything into account — from how the fabric was made to how the workers were treated and how much energy was used.

When a label only focuses on one issue, it can give the impression that a product is completely sustainable and eco-friendly, when it’s only meeting one standard.

This can be misleading. A shirt that’s “Fairtrade” might be made by well-paid workers but dyed with harmful chemicals. A “GOTS” product might be organic but shipped across the world, creating lots of carbon emissions.

To really make fashion sustainable, brands and labels need to look at the bigger picture and work together.

5. Consumers Don’t Always Understand the Labels

Even when eco labels are real and honest, many shoppers still don’t understand what they mean.

For example, someone might see “Oeko-Tex Standard 100” and think it means the fabric is organic (it doesn’t—it just means it’s safe from harmful chemicals). Or they might think “BCI cotton” means organic cotton, which isn’t true either.

This misunderstanding can cause label fatigue — when people get tired of trying to figure out what each label means and just ignore them.

To fix this, fashion brands and certification groups need to do a better job of educating consumers. They should explain what each label stands for and why it matters. The more people know, the more power eco labels can have.

The Bigger Picture: Why Eco Labels Matter Anyway

Even with their flaws, eco labels are an important step in making fashion better. They help the industry move away from fast fashion — where clothes are made quickly and cheaply, often with little care for the planet or workers.

Eco labels show that people care about where their clothes come from. They remind brands that shoppers are paying attention and that sustainability matters.

The more people learn about eco labels and support responsible brands, the more pressure there is for all companies to improve.

In the future, we might see one main eco label that covers all areas of sustainability — from environment to labor to safety. That would make things much simpler for everyone.

Conclusion: Small Labels, Big Impact

Eco labels might be small tags, but they have a big message. They remind us that although fashion is about looking good, it is also about doing good.

They encourage brands to care about how they make their clothes, and they help shoppers choose products that are better for people and the planet.

Still, we must remember that eco labels aren’t perfect. Some are expensive to earn, some can be confusing, and others are used unfairly. But even with these problems, they are one of the best tools we have to make the fashion industry more transparent and responsible.

If we learn to understand eco labels and use them wisely, we can all take part in creating a cleaner, fairer fashion world — one outfit at a time.


References:

OpenAI.2025.ChatGPT.Oct 17 Version[Large language model].https://chatgpt.com

Loughlin B. (2025, August 20). Navigating eco-labels: What do they really mean?. Institute of Sustainability Studies. https://instituteofsustainabilitystudies.com/insights/lexicon/navigating-eco-labels-what-do-they-really-mean/ 

Jangra, M. (2024, May 3). Exploring eco-labels for conscious clothing choices. Rural Handmade. https://ruralhandmade.com/blog/exploring-eco-labels-for-conscious-clothing-choices

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