EU cookie law is a 'restraint to trade online', says online retailer

Deadline for new law is 26 May

The EU cookie law will restrict businesses from operating in the EU, according to founder of online retailer Figleaves.com, Michael Ross.

The law is enforceable in the UK from this Saturday and is part of the EU Directive on Privacy and Electronic Communications.

It means that websites will have to ask users for permission before installing cookies that pass on information about browsing activities to third parties.

Ross believes that the law is hard to comply with and puts a restriction on online retailers.

"The EU cookie law is simply a bad law and a restraint to trade online at a time when business needs all the help it can get. Trading online without using cookies for analytics or various types of marketing tracking is analogous to asking a retailer to trade blindfolded. It's simply not possible," he argued.

Ross said that any business that implements the law in its entirety risks going bust, and suggested that most businesses will "soft comply" based on advice from the Information Commissioner's Office.

He emphasised that the law has good intentions but that it should not have been directed at "honest" online merchants.

"The law is well intentioned - protecting consumers and consumer data is important, but one needs to police the abuse, and not the benign actions of honest online merchants," he said.

Last month a survey by consultancy firm KPMG found that 95 per cent of the UK organisations it polled did not comply with the new law.

"Thankfully, most businesses are simply ignoring the new law. Let's hope the ICO does the same," said Ross.

Last week, Kim Walker, partner at law firm Thomas Eggar, advised UK organisations that are not yet compliant with the EU cookie law to show some awareness of the new legislation to avoid hefty fines.