Business, competition and consumers

Business, Competition and Consumers

An efficient and robust business environment, competition and consumer affairs is an ongoing challenge. Framsókn wants an efficient framework for business, to strengthen domestic competition, better ensure the position of consumers in the new business environment and enhance the international competitiveness of Icelandic industries.

Iceland's Competitiveness

Iceland's economy is a micro-economy in an international context. As such, it is very important for Iceland to be competitive in the international market. Only in this way is it possible to ensure a positive foreign exchange balance and increased economic growth in this country. Productivity has not kept pace with wage developments in recent years; if this trend continues, it will impact negatively on the employees themselves. There must be a direct link between the productivity of Icelandic labour and wage development so that Icelandic companies are competitive in the international market, which is a key prerequisite for future prosperity in this country.

Efficient Business Framework and Active Competition Surveillance

Framsókn wants to promote increased competitiveness and flexibility of the Icelandic economy by reducing barriers in the current regulatory framework and ensuring that new legislation is clear and effective. The framework and rules of the business environment should be simple and clear and intended to promote good business practices for the benefit of the entire society. Special attention is paid to ensuring that the regulatory framework for small and medium-sized enterprises is not too burdensome. Framsókn wants to ensure that the provisions of laws on gender quotas on corporate boards are implemented, more women are selected as top executives, and the unexplained gender pay gap is eliminated.

Framsókn considers it urgent that the benefits of competition are passed on to consumers. Efficient and robust monitoring of competition and corporate practices is an important part of this. The Competition Authority needs to be strengthened so that it can fulfil and perform its statutory tasks. It is desirable that the framework of competition legislation here is comparable to that of other countries regarding the independence of supervision, surveillance powers and the rights of parties involved in competition matters. A possible merger or joint operation of the Competition Authority and the Consumer Agency may be considered in this regard.

Framsókn wants to strengthen the foundation of cooperatives and simplify their formation by reducing the minimum number of founders from 15 to 3. The provision to change the operational form of a cooperative to a limited company must be abolished, and it must be better ensured that the interests of the communities where cooperatives are operated benefit in case of dissolution of the cooperative.

Better Consumer Protection

Framsókn wants continued efforts to improve the rights and position of consumers where education and increased consumer awareness, effective market surveillance and good market practices, cooperation between businesses and interest groups in the field of consumer affairs will be guiding principles. Consumer rights should be enhanced with a comprehensive review of consumer legislation, taking into account technological developments and consumer rights in online commerce, for example regarding product safety and improved consumer service.

Consumer protection related to financial services needs to be increased with improved information provision and guidance regarding consumer loans. Companies in the financial market must continue to be subject to scrutiny with annual reviews of their profitability and charges, while ensuring that the Central Bank of Iceland has clear authority to establish a domestic payment system that would reduce costs for consumers and Icelandic sellers and improve national security in the field of payment systems. The situation of vulnerable groups, such as children, the elderly and people with disabilities, must be considered with special protective measures in the area of consumer affairs. In this context, the framework for small loans can be reviewed.

A legislative amendment should ensure that all advertisements to consumers are in Icelandic, with the aim of improving the position of Icelandic consumers as well as the language itself. Consumers must be better enabled to make informed decisions when purchasing products and services based on sustainability, including focusing on product labelling and accurate information.