#E2025J0014EFTA Court Judgment: Iceland Found Liable for Failing to Implement EU Sale of Goods Directive 2019/771

On 10 December 2025, the EFTA Court issued a judgment in Case E-14/25 finding that Iceland had failed to fulfil its obligations under the EEA Agreement by not implementing Directive (EU) 2019/771 on contracts for the sale of goods. The case was brought by the EFTA Surveillance Authority, which monitors EEA-EFTA states' compliance with their EEA obligations. Directive 2019/771 harmonises consumer rights across the EU/EEA in relation to the sale of goods, establishing uniform rules on conformity of goods, seller liability, remedies available to consumers (repair, replacement, price reduction, or contract rescission), and minimum guarantee periods. Iceland was obligated to transpose this directive into national law by 1 July 2021, with application from 1 January 2022. The EFTA Court's ruling confirms Iceland's breach of EEA law, which may expose Iceland to further financial penalties if it continues to delay implementation. This judgment reinforces the enforcement mechanism available to the EFTA Surveillance Authority to ensure uniform application of EEA rules across EFTA member states. The ruling has practical implications for Icelandic consumers and businesses, as the directive significantly strengthens buyer protections — particularly for digital content embedded in goods — and creates a more level playing field across the EEA single market.

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