Neytendastofa raises concerns over misleading sustainability claims in Iceland

Consumer watchdog Neytendastofa has expressed concerns that the term “sustainability” is misleading. The agency’s annual report highlighted deceptive advertising and price labeling complaints as key issues in the previous year.

Among its decisions, Neytendastofa ruled against a company’s claim of sustainability that was deemed misleading to consumers. Additionally, it issued its first rulings regarding advertising and promotions related to nicotine products, focusing on store labeling, social media posts, and online descriptions. The agency received numerous tips about breaches of advertising bans, resulting in investigations into ten vendors.

Moreover, 29 companies were fined for improper price labeling across 36 stores. Neytendastofa also scrutinized online grocery stores to ensure they displayed unit prices alongside final sale prices, taking formal action against one seller for non-compliance.

Continuing its oversight of health claims in cosmetics, the agency concluded cases against four parties regarding claims about the medicinal effects of CBD products, with administrative fines issued for three of them due to violations of established guidelines.

The agency has also faced increasing scrutiny over hidden advertisements associated with social media influencers, addressing only one ad campaign this time, which involved the individual posting the ads, the company behind them, and the advertising agency that organized the campaign.

A strategic decision was made regarding environmental claims in marketing, specifically addressing the broad use of the term “sustainable.” Neytendastofa stated that vague terminology used without further explanation can constitute misleading business practices and could financially harm consumers. This matter is currently under review by the Consumer Affairs Appeals Committee, and more decisions are anticipated in the coming years.