EFTA Surveillance Authority v Iceland - Failure to Implement Directive (EU) 2019/771
Summary
The EFTA Court has issued a judgment against Iceland in Case E-14/25, finding that Iceland failed to fulfill its obligations by not implementing Directive (EU) 2019/771 concerning contracts for the sale of goods. This judgment signifies a breach of EFTA State obligations regarding the harmonization of consumer contract law.
What changed
The EFTA Court has ruled against Iceland in Case E-14/25, determining that Iceland failed to implement Directive (EU) 2019/771, which pertains to contracts for the sale of goods. This judgment confirms a failure by an EFTA State to meet its obligations under EU law, specifically concerning the transposition of directives aimed at harmonizing consumer rights across the European Economic Area.
Iceland is now required to rectify its non-compliance by fully implementing the directive. Failure to do so could lead to further legal action and potential sanctions by the EFTA Surveillance Authority. Regulated entities within Iceland involved in the sale of goods should ensure their practices align with the requirements of Directive (EU) 2019/771 to avoid future compliance issues.
What to do next
- Ensure full implementation of Directive (EU) 2019/771 into Icelandic national law.
- Review and update national legislation and consumer protection frameworks related to contracts for the sale of goods.
Source document (simplified)
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JUDGMENT OF THE COURT of 10 December 2025 in Case E-14/25 – EFTA Surveillance Authority v Iceland (Failure by an EFTA State to fulfil its obligations – Failure to implement – Directive (EU) 2019/771 – Contracts for the sale of goods)
JUDGMENT OF THE COURT of 10 December 2025 in Case E-14/25 – EFTA Surveillance Authority v Iceland (Failure by an EFTA State to fulfil its obligations – Failure to implement – Directive (EU) 2019/771 – Contracts for the sale of goods)
JUDGMENT OF THE COURT of 10 December 2025 in Case E-14/25 – EFTA Surveillance Authority v Iceland (Failure by an EFTA State to fulfil its obligations – Failure to implement – Directive (EU) 2019/771 – Contracts for the sale of goods)
OJ C, C/2026/1931, 26.3.2026, ELI: http://data.europa.eu/eli/C/2026/1931/oj (BG, ES, CS, DA, DE, ET, EL, EN, FR, GA, HR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
ELI: http://data.europa.eu/eli/C/2026/1931/oj
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| | Official Journal
of the European Union | EN
C series |
| | C/2026/1931 | 26.3.2026 |
JUDGMENT OF THE COURT
of 10 December 2025
in Case E-14/25
EFTA Surveillance Authority v Iceland
(Failure by an EFTA State to fulfil its obligations – Failure to implement – Directive (EU) 2019/771 – Contracts for the sale of goods)
(C/2026/1931)
In Case E-14/25, EFTA Surveillance Authority v Iceland – APPLICATION seeking a declaration that Iceland has failed to fulfil its obligations under the act referred to at points 7d, 7f and 7n of Annex XIX to the Agreement on the European Economic Area, (Directive (EU) 2019/771 of the European Parliament and of the Council of 20 May 2019 on certain aspects concerning contracts for the sale of goods, amending Regulation (EU) 2017/2394 and Directive 2009/22/EC, and repealing Directive 1999/44/EC), as adapted by Protocol 1 to that Agreement, and under Article 7 of the EEA Agreement, by failing to adopt the measures necessary to implement the act within the time prescribed, or in any event, by failing to inform the EFTA Surveillance Authority thereof, the Court, composed of Páll Hreinsson, President, Bernd Hammermann (Judge-Rapporteur) and Michael Reiertsen, Judges, gave judgment on 10 December 2025, the operative part of which is as follows:
The Court hereby:
| (1) | Declares that Iceland has failed to fulfil its obligations under the act referred to at points 7d, 7f and 7n of Annex XIX to the Agreement on the European Economic Area, (Directive (EU) 2019/771 of the European Parliament and of the Council of 20 May 2019 on certain aspects concerning contracts for the sale of goods, amending Regulation (EU) 2017/2394 and Directive 2009/22/EC, and repealing Directive 1999/44/EC), as adapted by Protocol 1 to that Agreement, and under Article 7 of the EEA Agreement, by failing to adopt the measures necessary to implement the act within the time prescribed. |
| (2) | Orders Iceland to bear the costs of the proceedings. |
ELI: http://data.europa.eu/eli/C/2026/1931/oj
ISSN 1977-091X (electronic edition)
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