This is just a labeling law, not even a boycott. It would provide individual consumers the ability to selectively boycott settlements without injuring Israel itself. Attacks on this law undermine pro-Israel, anti-settlement consumers. People who dislike Israel will already boycott all 'Made in Israel' goods.
Labor court orders Jerusalem light rail operators to return to work (Haaretz)
from the article: South Africa Zionist Federation takes anti-Israel measure to court