The European Council of Ministers has been called upon to ‘re-think’ a proposal to change the rules of trading in Europe.

Under the ‘Rome 1’ proposal, an internet trader would be obliged to settle any consumer dispute according to the laws of the country from which the product was ordered, not the country from which the trader operates.

Consequently, the trader could have to comply with the consumer protection laws of all 27 European Union (EU) member states.

The Federation of Small Businesses (FSB) believes the proposal could cost small firms ‘millions of pounds in legal advice fees’, and force many traders to stop providing online price information about their products.

“This proposal would send shopping back into the dark ages,” said Tina Sommer, FSB EU affairs spokesperson. “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. They would not be able to afford specialised legal advice to understand consumer laws in every EU member state.”

The British Retail Consortium’s Brussels director, Alisdair Gray has also expressed concern over the proposal:

“If the law is passed in its current form internet sales across European borders would, at best, be seriously stifled and, at worst, killed off completely, especially for smaller businesses,” said Gray.

© Crimson Business Ltd. 2007