Terry Hornby was shocked when he received a letter from the Performing Rights Society saying he needed a £56 licence to listen to songs by artists such as Robbie Williams and Madonna.
The royalty-collecting society said Mr Hornby could be taken to court if he continued to play the radio without a licence.
And it's not only newsagents who are affected – the rules extend to all businesses including hairdressers, garages, pubs, shops and offices even if customers couldn't hear the music.
Mr Hornby, director of Newsbox in Brockhurst Road, Gosport, said: 'Initially we thought it was a scam or just a piece of advertising, but this is genuine.
'I heard something a few weeks ago about hairdressers being targeted. We weren't playing to entice customers it was just to try and keep the staff sane during a long day. It's barmy.
'We're a small business and don't want to get a fine so we've taken the radio out.'
Adrian Crookes from PRS said letters had been sent to small businesses because often they were unaware they were breaking the law.
sion.donovan@thenews.co.uk