Consumer affairs measures

Consumer affairs were one of the issues that were put in the spotlight with the establishment of the Ministry of Culture and Business Affairs in February 2022. Support for organisations in the field of consumer affairs, such as the Consumer Association and the Homeowners' Association, has increased, an assessment of fee collection and profitability in the Icelandic banks was initiated to shed light on developments in that market, support has been provided for the price monitoring of ASÍ in the interest of consumers, and a review is underway on how the provision of information and guidance to consumers regarding lending is facilitated based on different loan forms, interest rates, inflation, etc.

In Parliament this spring, I also advocated for a bill on new marketing laws that mark certain milestones. The main focus of these laws is to strengthen consumer protection. There will be special provisions regarding unfair contract terms, which means, for example, that if contract terms in the purchase of goods and services are unfair to consumers, the Consumer Agency can take action. Another matter that is very important to me and relates to Icelandic is that it is emphasized that all advertisements must be in Icelandic. The intent is to reduce barriers in existing regulations, and that the laws are simple, clear, accessible, and technology-neutral and do not impose unnecessary burdens on the business community. It is also emphasized to ensure, as much as possible, that the legislative provisions regarding these matters are in line with regulations in Europe. Thus, this supports the main goal in government policy to strengthen domestic competition, improve the position of consumers in the new environment of online commerce, and enhance the international competitiveness of Icelandic businesses.

This week, drafts of a new comprehensive strategy in consumer affairs were published in the consultation portal, which I aim to present to Parliament in the spring session. Alongside this, an action plan is presented to be followed until 2030. This concerns nine defined actions that cover further updating and modernisation of legislation in the field of consumer affairs, increased emphasis on e-commerce and digitalisation, enhanced consumer protection in the field of financial services, and an emphasis on financial literacy, as well as special needs regarding vulnerable consumer groups, for example. In this context, I particularly want to mention that the regulations on small loans will be reviewed to protect those who are at a disadvantage and set clearer rules in this area. Various steps have been taken in recent years in this regard, but it is clear that there are various opportunities for further improvements in this area.

Significant work has taken place within the Ministry of Culture and Business Affairs in recent years to underpin real actions in favour of consumers up to the present day and for the future. I am convinced that the actions we will continue to implement will improve our society and consumer protection in the interest of all of us.

Lilja Dögg Alfreðsdóttir, Minister of Culture and Business Affairs and Deputy Chairman of the Progressive Party.

The article was first published in Morgunblaðið on May 2, 2024.