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The Consumer Agency was established 1 July 2005 according to Act No 62/2005 (also available in Danish). The Consumer Agency is one of the governmental agencies in Iceland which is entrusted with market surveillance of business operators, good functioning and transparency of the markets in respect to safety and consumers legal rights as well as enforcement of legislation adopted by the Icelandic Parliament for protection of consumers health, legal and economical rights.

The Consumer Agency is a governmental agency falling under the auspices of Ministry of the Interior.




PayPal commits to amending terms & conditions to fully comply with EU consumer rules

Brussels, 20 December 2023 Following a dialogue with the European Commission and national consumer authorities, PayPal has committed to modifying its terms and conditions to make them more transparent and easier to understand for consumers.

Consumer protection: major online travel agencies commit to refund within 14 days for cancelled flights

Following a dialogue with the European Commission and national consumer authorities (CPC network), Edreams ODIGEO, Etraveli Group and Kiwi.com committed to better inform consumers of their rights in case of flight cancellations by airlines and to transfer ticket refunds within seven days after receiving them from the airlines, meaning that consumers should receive them after a total of 14 days.

Consumer protection: Shopify commits to new practices to make it safer for consumers buying from web stores on the platform

Following dialogues with the Commission and the network of national consumer protection (CPC) authorities, multinational e-commerce business Shopify has committed to making several improvements to make shopping safer for customers, bringing it in line with EU rules. The dialogue first originated following the receipt of numerous complaints, which peaked during the COVID-19 pandemic, through the European Consumer Centres. The complaints mainly related to web stores hosted by the platform, found to have engaged in illegal practices, such as making fake offers and fake scarcity claims, supplying counterfeit goods or not providing their contact details. The Commission, together with the CPC, and led by Belgium’s Directorate General for Economic Inspection, launched a dialogue with Shopify in July 2021, aimed at introducing changes to address the illegal practices of traders in its platform. Shopify has now committed to create a fast and effective ‘notice and action’ procedure for national consumer authorities and to change its templates to push traders to be more transparent towards consumers.

Consumer protection: Airlines commit to timely reimbursement after flight cancellations

Following dialogues with the Commission and national consumer protection authorities, 16 major airlines have committed to better information and timely reimbursement of passengers in case of flight cancellations. The Commission had alerted the Consumer Protection Cooperation (CPC) enforcement authorities in December 2020 to address several airlines’ cancellation and reimbursement practices in the context of the COVID-19 pandemic.

Consumer credit online: information given to consumers is insufficient in more than one third of cases checked by the Commission and national authorities

Today, the European Commission and national consumer protection authorities published the results of an EU-wide screening of 118 websites offering consumer credit online. More than one-third (36%) of the screened websites were found to be in potential breach of the EU consumer law. Key information such as the cost of credit, interest rates or the existence of compulsory insurance were either missing or unclear. The method used by some lending websites to assess consumers’ capacity to repay their loan, the so-called creditworthiness, was not clear either.