Can I return goods I bought online?
Yes — in online and other distance sales you have 14 days to withdraw from the purchase without giving a reason. Under Act no. 16/2016 on consumer contracts a 14-day right of withdrawal applies to distance sales (online, phone, mail) and to off-premises sales. The period runs from the day you take the goods into your possession. The myth many hold: that the same 14-day right applies to everything, including a purchase in an ordinary shop. That is wrong — the withdrawal right does not cover in-store purchases; returning a non-faulty item to a shop is a courtesy of the retailer, not a legal duty. And the point many underestimate: if the seller did not inform you of the right it extends by up to 12 months, and a refund must be paid within 14 days — not 30, as is often wrongly said — including the delivery cost.
📋 The rules
- In distance and off-premises sales a consumer has a 14-day right to withdraw without a reason (Act no. 16/2016).
- The period runs from delivery of the goods (or the date of a service contract); with several shipments, from the last item.
- If the seller did not inform you of the withdrawal right it extends by up to 12 months; if they inform you later it ends 14 days after that.
- The seller must refund all payments, including the delivery cost, within 14 days of being notified of withdrawal, by the same means of payment.
- The consumer returns the goods within 14 days of notifying and generally bears the cost of return unless the seller has taken it on.
🔓 Exceptions
- The right does not cover purchases in a shop (outside distance sales); returning a non-faulty item there is the retailer courtesy, not a legal duty.
- Custom-made or personalised goods, perishables and sealed goods unsealed for health or hygiene reasons are excluded from withdrawal.
- Sealed audio or video recordings or software that have been opened, and digital content whose delivery has begun, fall outside the withdrawal right.
⚠️ Penalties & fines
For the seller the costliest thing is to fail to inform of the withdrawal right. If they do not, the right to return extends by up to 12 months, and if a refund drags past the 14-day deadline the consumer can claim it with penalty interest and turn to the Consumer Agency. The seller must refund all payments including the cheapest delivery cost, and may only hold money back until the goods are returned or proof of return is provided. For the consumer the cost often forgotten is the return-shipping charge, which they bear themselves unless otherwise agreed, and any loss of value if the goods have been used beyond what is needed to examine them. The hidden cost is also a misunderstanding: assuming that a shop purchase can always be returned — where a shop does not offer it as a matter of practice there is no legal duty, and then only the rights for faulty goods or the terms of the shop itself apply.
📎 Official sources
- Althingi · Act no. 16/2016 on consumer contracts →
- Consumer Agency (Neytendastofa) · Right of return and distance sales →
- Ísland.is · Cancellation and right of return on goods and services →
❓ Frequently asked
Do I always have 14 days to return goods?
You have a 14-day withdrawal right when you buy in distance sales, such as online, by phone or by mail, and in off-premises sales. This right does not, however, cover purchases in an ordinary shop, where returning a non-faulty item is governed by the terms of the shop itself.
From what day does the 14-day period run?
For goods the period runs from the day you take the goods into your possession, not from the order date. If several items in one order are delivered at different times it runs from the last item, and for a service from when the contract was made.
What do I get refunded if I use the right?
The seller must refund all payments you made, including the delivery cost, within 14 days of your notifying withdrawal. You generally bear the cost of the return shipping itself, however, unless the seller offered to cover it or failed to inform you about it.
What if the seller never told me about the right of return?
Then your withdrawal right extends by up to 12 months beyond the original 14 days. If the seller informs you later within that time, the right ends 14 days after you receive the information, so it pays to know this right.
Can I return something I bought in a shop if I change my mind?
There is no statutory right to return a non-faulty item bought in a shop simply because you change your mind. Many shops offer such returns or a credit note as a goodwill gesture, but that depends on the terms of each shop and is not required by law.
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