The European Union is poised to mandate that Israeli products made in contested territories carry consumer warning labels, a decision that could trigger American anti-boycott laws and open up what legal experts describe as a "Pandora's box" of litigation, according to multiple sources involved in the legal dispute who spoke to the Washington Free Beacon.

The Advocate General of the European Court of Justice recently issued non-binding opinion arguing that EU law requires Israeli-made products to be labeled as coming from "settlements" and "Israeli colonies."

The decision was seen as a major win for supporters of the anti-Semitic Boycott, Divestment, and Sanctions movement, or BDS, which seeks to wage economic warfare on Israel and its citizens. Pro-Israel activists, as well as the Jewish businesses involved in the legal dispute, see the decision as an ominous warning sign that they say is reminiscent of Holocaust-era boycotts of Jewish businesses.