Your position would be correct even under a capitalist / austrian-economics lens.
The invisible hand of the free market would should signal to cocoa producers that fair trade / non-child labor labelling gets more sales despite the premium, and in turn more companies would begin to migrate to the more ethical option with enough push back.
This specific scenario is literally how Econ-101 is taught in even the most conservative institutions, LOL.
Wild how we've become so treat-pilled that even "progressives" think they have no impact on a system.