Private Certification Schemes and Private Standards, also known as Private Voluntary Standards (PVS), Private Food Standards, or Schemes, are voluntary standards developed and maintained by private organizations, companies, or industry associations.

These standards are typically related to a specific product or industry and establish unique guidelines for the production, testing, and quality of products or services.

Private certification schemes are typically used to provide assurance to consumers and other stakeholders that a product or service meets certain criteria, namely quality standards. These schemes often involve third-party certification organizations responsible for evaluating products or services against the standards set by the private organization or company.

Private standards can set benchmarks for a wide range of products and services, including food, textiles, electronics, and construction materials. They can also establish guidelines for business practices, such as environmental sustainability or social responsibility.

While private certification schemes and private standards are not legally binding, they can be important indicators of quality for consumers and help companies differentiate their products and services from those of their competitors. Many companies choose to obtain certification or adhere to private standards to demonstrate their commitment to quality and build trust with their customers. The motivation for private standards mainly comes from market competence and the technical advantages of promoters, which can strongly influence related markets and even become the de facto mandatory standards.

Recent developments have seen an increase in the integration of private standards with global frameworks for sustainability and social responsibility. Organizations are increasingly aligning their private standards with international agreements like the Paris Agreement and the UN Sustainable Development Goals (SDGs), reflecting a broader commitment to global challenges.

Next to the value adding, challenges related to private standards can include the suitability of requirements and indicators, overlap with technical regulations, standard setting process, accountability of standard setters and accreditation bodies, the monitoring system itself, and the distribution of costs and benefits along the supply chain.

In recent years, there has been growing criticism of private standards for contributing to regulatory fragmentation and adding complexity to international trade. Critics argue that the proliferation of private standards can create barriers for small producers and developing countries, leading to calls for greater harmonization and transparency in standard-setting processes.

History of Private Standards Schemes

The number of private standards and their influence on trade have risen steadily since the early 1990s under the combined forces of globalization, policy liberalization, changing consumer preferences, and progress in information technology. There is a wide array of private standards, each with its own objectives, scope, advantages, and constraints, making it difficult to treat these standards as a homogeneous category.

The type of organization that develops the standard and the development process may have significant implications for the standard’s suitability to producers. It is difficult to assess the market penetration of private standards, as national customs agencies do not monitor this information. However, there is increasing data availability through industry reports and academic studies that highlight the significant growth of private standards in various sectors, including agriculture and manufacturing.

Examples of retailer’s own standards include Tesco’s Nature Choice and Carrefour’s Filière Qualité. An example of a buyers’ standard is the GlobalGAP (formerly EurepGAP) protocol developed by a group of European supermarket chains. Halal and Kosher are examples of private religious standards.

Fair Trade Standards

Recent figures from Fairtrade International indicate that global sales of Fairtrade certified products have continued to grow in recent years. This growth reflects an increasing consumer demand for ethically sourced products.

Organic Standards

Organic certification is a process that ensures agricultural products, including crops and livestock, are produced using specific standards that prioritize the use of natural and sustainable methods. It is estimated that 98 percent of the sales of certified organic products take place in developed countries. These figures refer to all organic-labelled foods, whether certified to private or public standards.

Most developed countries have adopted a public standard for organic products. In these countries, certification to the public standard is mandatory if the product is to be labelled as organic. As a result, the bulk of organic-labelled foods are certified to public standards. However, some of these foods are also certified to a private organic standard in addition to the public standard of the country where they are sold.

Recent trends show an increasing emphasis on regenerative agriculture within organic standards, focusing on practices that enhance soil health and biodiversity beyond the basic requirements of organic certification.