Consumer Rights
Product warranties, the right of withdrawal in distance selling, unfair commercial practices, debt collection, financial protection, product safety, price transparency and complaints under Icelandic law.
Covered in this guide:
If a product you buy in Iceland is defective, lög um neytendakaup (the Consumer Sales Act, Lög nr. 48/2003) give you a two-year complaint period (5 years for goods with a longer expected lifespan) — defects appearing in the first 6 months are presumed to have been present at the time of sale. Purchases online, by telephone or at the door carry a 14-day right of withdrawal under lög um neytendasamninga (the Consumer Contracts Act, Lög nr. 16/2016). Misleading advertising and hidden fees are prohibited under Lög nr. 57/2005, enforced by Neytendastofa (the Consumer Agency). Unresolved disputes go to Kærunefnd vöru- og þjónustukaupa (the Complaints Board for Goods and Services Purchases); complaints about banks and finance go to Seðlabanki Íslands (the Central Bank of Iceland).
Key Laws
Lög um neytendakaup
Lög nr. 48/2003
Two-year minimum warranty, a five-year extended period for goods with a longer lifespan, and remedies for defective goods
Lög um neytendasamninga
Lög nr. 16/2016
14-day right of withdrawal in distance and doorstep selling, pre-contract information duty
Lög um eftirlit með viðskiptaháttum og markaðssetningu
Lög nr. 57/2005
Prohibits misleading advertising, aggressive selling and hidden fees
Lög um fjármálafyrirtæki
Lög nr. 161/2002
Rules on banks, insurers and lenders; consumer protection in the financial market
Consumer Purchases and Warranties
Icelandic law gives consumers strong warranty rights when buying goods:Two-year minimum warranty: You have the right to complain about defective goods for at least 2 years from purchase.Extended...
Right of Withdrawal (Distance Selling)
When you buy something online or in a distance sale, you have the right to change your mind:14-day cooling-off period: You can withdraw from a distance or doorstep sales contract within 14 calendar...
Unfair Commercial Practices
Icelandic law prohibits businesses from using unfair or misleading commercial practices:Unfair commercial practices are prohibited before, during and after any transaction in goods or...
Rights in Debt Collection
If you owe money, you have rights regarding how debts are collected:Debt-collection firms must hold a licence from the Financial Supervisory Authority (now the Central Bank of Iceland).First...
Consumer Protection in the Financial Market
Consumer protection in the Icelandic financial market is the responsibility of the Central Bank of Iceland (which took over the Financial Supervisory Authority in 2020):Lög um neytendalán (the...
Product Safety and Product Liability
As a member of the EEA, Iceland applies EU requirements on product safety and product liability:Product safety (Lög nr. 134/1995):Neytendastofa is the market-surveillance authority — it can order the...
Price Transparency
Icelandic law requires businesses to be transparent about pricing:All advertising must be supported by evidence — claims about price, discount and savings must be true.Reglugerð nr. 366/2008 sets...
The Consumer Complaints Process
Iceland has a structured two-step complaints process for consumer matters:Step 1 — Complain directly to the seller. You must first try to resolve the matter with the business.Step 2 — Kærunefnd vöru-...