The British Retail Consortium says proposed European labelling legislation could cost retailers £1bn in lost sales.

BRC food policy director Richard Ali said the proposed regulation on nutrition and health claims made on food could affect over 4,250 "healthy eating" retailer branded products - worth £1bn a year in sales.

Ali said the proposals were overly prescriptive, and likely to result in a reduction of healthy products, restricting consumer choice.

Ali said the British Retail Consortium had written to the Food Standards Agency to raise its concerns.