EFTA Surveillance Authority v Iceland - Consumer Protection Rules

EUR-Lex Official Journal C-series

Filed December 9th, 2025

Detected March 26th, 2026

Summary

The EFTA Court has issued a judgment against Iceland in Case E-11/25, finding that Iceland failed to fulfill its obligations regarding consumer protection rules. This judgment specifically relates to the failure to implement Directive (EU) 2019/2161, which aims to strengthen consumer protection across the EU. Iceland is now required to rectify its non-compliance.

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What changed

The EFTA Court has ruled against Iceland in Case E-11/25, finding that Iceland failed to implement Directive (EU) 2019/2161 concerning consumer protection rules. This judgment signifies a formal finding of non-compliance by an EFTA State with its obligations under the EEA Agreement, specifically concerning the transposition of EU consumer protection legislation. The EFTA Surveillance Authority brought the case, highlighting Iceland's failure to adequately implement the directive.

Iceland must now take corrective actions to comply with the directive and the court's judgment. Failure to do so could lead to further proceedings and potential sanctions. Regulated entities operating in Iceland should be aware that Iceland's consumer protection framework will be subject to scrutiny to ensure full alignment with Directive (EU) 2019/2161, which impacts areas such as unfair commercial practices, digital services, and consumer rights in online transactions.

What to do next

Review Iceland's national legislation for compliance with Directive (EU) 2019/2161
Ensure all consumer protection practices align with the directive's requirements
Monitor EFTA Surveillance Authority actions regarding Iceland's compliance status

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JUDGMENT OF THE COURT of 9 December 2025 in Case E-11/25 – EFTA Surveillance Authority v Iceland (Failure by an EFTA State to fulfil its obligations –Failure to implement – Directive (EU) 2019/2161 – Consumer protection rules)

OJ C, C/2026/1928, 26.3.2026, ELI: http://data.europa.eu/eli/C/2026/1928/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/2026/1928/oj

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| | Official Journal
of the European Union | EN

C series |

| | C/2026/1928 | 26.3.2026 |
JUDGMENT OF THE COURT

of 9 December 2025

in Case E-11/25

EFTA Surveillance Authority v Iceland

(Failure by an EFTA State to fulfil its obligations –Failure to implement – Directive (EU) 2019/2161 – Consumer protection rules)

(C/2026/1928)

In Case E-11/25, EFTA Surveillance Authority v Iceland – APPLICATION seeking a declaration that Iceland has failed to fulfil its obligations under the act referred to at points 1a, 7a, 7g and 7i of Annex XIX to the Agreement on the European Economic Area, (Directive (EU) 2019/2161 of the European Parliament and of the Council of 27 November 2019 amending Council Directive 93/13/EEC and Directives 98/6/EC, 2005/29/EC and 2011/83/EU of the European Parliament and of the Council as regards the better enforcement and modernisation of Union consumer protection rules), as adapted by Protocol 1 to the EEA 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 9 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 1a, 7a, 7g and 7i of Annex XIX to the Agreement on the European Economic Area, (Directive (EU) 2019/2161 of the European Parliament and of the Council of 27 November 2019 amending Council Directive 93/13/EEC and Directives 98/6/EC, 2005/29/EC and 2011/83/EU of the European Parliament and of the Council as regards the better enforcement and modernisation of Union consumer protection rules), as adapted by Protocol 1 to the EEA 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/2026/1928/oj

ISSN 1977-091X (electronic edition)

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