The new proposal regulates which law should apply when a dispute arises over a contract. The legislation also asks companies selling their products and services online to comply with as many as 27 different sets of consumer protection laws in each EU member state.
But the FSB, Britain’s biggest business organisation, is concerned that not only will this cost small firms many millions of pounds in fees for legal advice, it will also force many to stop providing information online about their prices and products. 

The UK has chosen to opt out of this legislation, but even so, it will still apply to UK firms who sell in the countries that have opted in.
Tina Sommer, FSB EU affairs spokesperson, said: “This proposal would send shopping back into the dark ages. It is short-sighted and does not assist consumers – it restricts their choice. The internet has revolutionised shopping for consumers, giving them choices and information that they never had before.  Shoppers can now use the web to compare prices online before buying, whether on the internet or on the high street. To introduce these proposals would force many businesses to remove information from their websites.”

She added that businesses would not be able to afford specialised legal advice to understand consumer laws in every EU member state. “We speak on behalf of our members who are also consumers - many are self-employed – and so buy as individuals. This proposal does not protect buyers; it merely adds to the EU red tape burden and returns us to the pre-internet burden. The EU needs to think again.”

The FSB’s Brussels office is to submit an assessment to policy-makers in late February to demonstrate the negative impact that this will have on businesses.