The Federation of Small Businesses (FSB) today called on the European Council of Ministers to re-think a European Commission proposal to change the rules governing contractual arrangements known as “Rome I”. It suggests that online selling by businesses should comply with the 27 different sets of consumer protection laws in each EU member state. The proposals are being discussed in the European Council today.
The FSB, Britain’s biggest business organisation, is concerned that not only will this cost small firms many millions of pounds in legal advice fees it will also force many to stop providing information online about their prices and products. Despite the fact that the UK has opted out of this area of EU legislation it will still apply to UK firms that sell in those countries that have opted in.
The FSB will be carrying out its own impact assessment to put a price tag on these proposals because so far the EU has not done so. The FSB’s Brussels office will also be submitting this assessment to policy-makers later this month and will be accompanied by a web-based entrepreneur who will demonstrate the devastating impact that this would have on such businesses.
Tina Sommer, FSB EU Affairs Spokesman, 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. They 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.”