Icelandic prevention organisations demand action against illegal online alcohol sales
- Nordic Alcohol and Drug Policy Network
- 50 minutes ago
- 3 min read
14.07.2026 - A coalition of Icelandic prevention and public health organisations has called on the police to immediately stop online alcohol sales that they say are taking place in violation of Icelandic law. Their intervention follows a district court ruling against the online retailer Smáríkið and public comments by a senior police official about the practical difficulties of taking action against a rapidly expanding market.
According to Vísir, around twenty companies now offer alcohol for online purchase in Iceland, either for collection or home delivery. Some advertise delivery within approximately half an hour. Online alcohol businesses have expanded rapidly since 2020, often presenting their operations as sales by foreign companies. Before this development, the state alcohol and tobacco company ÁTVR held the exclusive right to sell alcohol directly to consumers in Iceland.
In April 2026, the Reykjanes District Court found that Smáríkið’s alcohol business constituted retail sales and violated ÁTVR’s exclusive retail rights. The case has been appealed to the Court of Appeal. Vísir reported that several other cases concerning online alcohol sales have also been brought to the attention of the police.
Hildur Sunna Pálmadóttir, deputy chief of the Capital Region Police, told Vísir that the police were considering how to respond in light of the ruling. She acknowledged that it would be possible to stop the businesses, including by seizing alcohol offered for sale, but said the scale of the market made such an intervention difficult. She also questioned whether Parliament ultimately intended to permit online alcohol sales or maintain the current legal position.
Finance and Economic Affairs Minister Daði Már Kristófersson took a clearer position, telling Vísir that online alcohol sales were not permitted and that the government had not discussed changing the legislation. He said the law must be followed, while noting that the legal process should be allowed to reach its conclusion following the appeal.
The police comments prompted a joint response from Fræðsla og forvarnir, IOGT Iceland, the prevention cooperation council SAFF, and Foreldrasamtök gegn áfengisauglýsingum, an organisation of parents opposing alcohol advertising. The organisations demanded that the police enforce the law and stop illegal online alcohol sales immediately. They argued that, in a state governed by law, the police must respond to the district court ruling, their own assessment that the activity is unlawful, and the government’s stated position.
The organisations also rejected the suggestion that widespread lawbreaking should lead the police to wait for possible legislative changes. Árni Guðmundsson, a prevention specialist and chair of Foreldrasamtök gegn áfengisauglýsingum, told Vísir that new outlets were continuing to open despite the ruling. He said the role of the police was to enforce the law as it currently stands, rather than speculate about whether Parliament might change it later.
The controversy has also drawn criticism from former minister and parliamentarian Ögmundur Jónasson. In an opinion article published by Vísir, Jónasson accused the authorities of failing to act against large-scale violations and argued that the continued expansion of online alcohol sales was undermining both Iceland’s legal alcohol retail system and the public health policy supported by health authorities and prevention organisations. His claims represent his own political assessment of the authorities’ conduct, rather than additional reporting on the legal case.
The immediate legal position remains subject to the appeal in the Smáríkið case. In the meantime, the dispute has developed into a broader debate about law enforcement, the role of Parliament, and the future of Iceland’s state-controlled alcohol retail system.
