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On August 18, 2026, the Icelandic Government opened a consultation on proposed amendments to Iceland's consumer contracts legislation. The consultation, administered by the Ministry of Business and Market Affairs, runs until September 1, 2026, and seeks public input on changes to the Consumer Contracts Act No. 16/2016. The proposed amendments implement the European Union's Consumer Rights Directive modernisation rules, specifically EU Directive 2019/2161, which updated Directive 2011/83/EU. Key changes include three main provisions. First, the legislation introduces new requirements for information disclosure when contracts are concluded on online marketplaces, including whether third-party sellers offering goods, services, or digital content are traders or consumers, and how this affects consumer rights. Second, the scope expands to cover contracts where sellers provide digital content or digital services to consumers in exchange for personal data, except where data is used solely to deliver the content or service or is legally required. Third, the amendments establish new criteria for determining penalty amounts and specify maximum fines based on the seller's annual turnover, aligning with the modernisation directive's provisions. These changes follow similar amendments made through new marketing legislation passed during the 2026 spring parliamentary session and support Iceland's consumer policy strategy through 2030. The consultation invites stakeholders to submit written comments through the government's consultation portal. Responses received will be published as they arrive. The Office of Business and Markets oversees this consultation process and can be contacted at atrn@atrn.is for further information.