Article · July 5, 2026

Consumer Rights in Iceland: What You Should Know

As a consumer in Iceland you enjoy a range of rights when you buy from businesses. Iceland follows the EEA consumer rules, so the protection is similar to that in the EU. Knowing your rights helps you stand your ground when something goes wrong.

The right to information

Sellers have a duty to inform consumers. Before you buy, you are entitled to correct and clear information about the product or service, including the full price, its main features and the terms.

Misleading information or advertising can be unlawful and can be reported to the Consumer Agency (Neytendastofa).

Faulty goods

If a product turns out to be faulty, you can be entitled to a repair, a replacement, a price reduction or to cancel the purchase, depending on the defect.

As a rule you can complain about defects for two years from purchase, and for up to five years for goods meant to last considerably longer. Report the defect as soon as you notice it.

The right to cancel online purchases

When you buy at a distance, for example online, you usually have a 14-day right of withdrawal. You can return the goods within that period without giving a reason.

The right does not apply to all products, such as custom-made items or perishable goods, so check the seller's terms.

Unfair terms

Terms that are unfair to the consumer can be invalid. Businesses may not use terms that create a significant imbalance between the parties to the consumer's detriment. If you think a term is unfair, you can challenge it.

Where to complain

Start by contacting the seller in writing and keep a copy. If you cannot agree, you can take the dispute to the Complaints Committee for Goods and Services (Kærunefnd vöru- og þjónustukaupa), a low-cost alternative to the courts. The Consumers' Association of Iceland (Neytendasamtökin) also advises its members.

For purchases from businesses in other EEA countries, the European Consumer Centre network can help.

When a lawyer helps

For larger amounts or complex disputes, a lawyer can assess your position and pursue your claim. These cases fall under competition and consumer law.

Find a lawyer in that field or browse lawyers in your region.

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