Data Protected - Iceland
Contributed by LOGOS - Legal Services
Last updated February 2024
General | Data Protection Laws
National Legislation
National Supervisory Authority
Scope of Application
Personal Data
Sensitive Personal Data
Data Protection Officers
Accountability and Privacy Impact Assessments
Rights of Data Subjects
Security
Transfer of Personal Data to Third Countries
Enforcement
ePrivacy | Marketing and cookies
National Legislation
Cookies
Marketing by E-mail
Marketing by Telephone
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General | Data Protection Laws
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National Legislation
General data protection laws
The General Data Protection Regulation (EU) (2016/679) (“GDPR”).
The Icelandic Parliament passed Act 90/2018 on data protection and processing of personal data (“the Data Protection Act”) in July 2018 to implement the GDPR.
Entry into force
The GDPR has applied since 25 May 2018.
The Data Protection Act entered into force on 15 July 2018.
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National Supervisory Authority
Details of the competent national supervisory authority
The Data Protection Authority will continue to act as the supervisory authority in Iceland.
The Data Protection Authority (the “Authority”)
Rauðarárstíg 10
105 Reykjavík
Iceland
The Authority will represent Iceland on the European Data Protection Board.
Notification or registration scheme and timing
There is no obligation to notify regulators of any processing under the GDPR. However, controllers and processors must keep a record of their processing and make it available to their supervisory authority on request (subject to limited exemptions).
According to the Data Protection Act, the Authority can require that it be consulted regarding, and give prior authorisation to, processing for the performance of a task carried out in the public interest, in contexts where such processing poses a special risk to the rights and freedoms of data subjects.
The Authority has issued Rules no. 811/2019 which state that prior authorisation is required for the following types of processing: (i) combination of a file that contains sensitive personal data with another file, whether the latter file contains general or sensitive personal data; (ii) processing of personal data on criminal conduct or criminal history, drug and alcohol use and sex and sexual behaviour; (iii) collection of personal data on financial matters, credit standing and creditworthiness of an individual for the purpose of transferring the data to others; (iv) processing of data on social problems or other private issues such as marriages, divorce, dissolution, adoption and fostering agreements; (v) processing of personal data which entails that a person's name is entered on a list according to predetermined criteria and the data transferred to a third party in order to deny the person of a particular loan or service; (vi) transfer of sensitive personal data for the benefit of scientific research which falls outside the scope of the Act on Scientific Research in the Health Sector, no. 44/2014; (vii) transfer of sensitive personal data stored by the government for the purpose of investigation; (viii) the transfer of personal data stored by the government for the purpose of investigations, when the transfer presents a special risk of infringing the rights and freedoms of the data subject.
Prior authorisation is however not required where the processing takes place based on the data subjects’ consent or where it is provided for by law.
Exemptions to notification
Not applicable.
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Scope of Application
What is the territorial scope of application?
The GDPR applies to the processing of personal data in the context of the establishment of a controller or processor in the EU.
It also contains express extra-territorial provisions and will apply to controllers or processors based outside the EU that: (i) offer goods or services to individuals in the EU; or (ii) monitor individuals within the EU. Controllers and processors caught by these provisions will need to appoint a representative in the EU, subject to certain limited exemptions.
The European Data Protection Board has issued Guidelines on the territorial scope of the GDPR (3/2018).
Is there a concept of a controller and processor?
Yes. The GDPR contains the concept of a controller, who determines the purpose and means of processing, and a processor, who just processes personal data on behalf of the controller.
The European Data Protection Board has issued Guidelines on the concepts of controller and processor in the GDPR (7/2020).
Both controllers and processors are subject to the rules in the GDPR, but the obligations placed on processors are more limited.
Are both manual and electronic records subject to data protection legislation?
Yes. The GDPR applies to both electronic records and structured hard copy records.
Are there any national derogations?
The GDPR does not apply to law enforcement activities which are instead subject to the Law Enforcement Directive. The GDPR also does not apply to areas of law that are outside the scope of Union law, such as national security, and does not apply to purely personal or household activity.
The Data Protection Act also applies to deceased people for 5 years from their death. However, this period will be longer in the case of personal data that is reasonably considered to be confidential.
The Data Protection Act also contains some national derogations, in connection to journalism, judicial acts and projects of the Parliament.
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Personal Data
What is personal data?
Personal data is information relating to an identified or identifiable natural person.
This is a broad term and includes a wide range of information. The GDPR expressly states it includes online identifiers such as cookies.
Is information about legal entities personal data?
No. However, information about sole traders and partnerships is likely to be personal data.
What are the rules for processing personal data?
All processing of personal data must comply with all six general data quality principles. Personal data must be: (i) processed fairly, lawfully and transparently; (ii) collected for specific, explicit and legitimate purposes and not processed in a manner incompatible with those purposes; (iii) adequate, relevant and not excessive; (iv) accurate and, where necessary, up to date; (v) kept in an identifiable form for no longer than necessary; and (vi) kept secure.
The processing of personal data must also satisfy at least one condition for processing personal data. These conditions are that the processing is: (a) carried out with the data subject’s consent; (b) necessary for the performance of a contract with the data subject; (c) necessary for compliance with a legal obligation; (d) necessary in order to protect the vital interests of the data subject; (e) necessary for the public interest or in the exercise of official authority; or (f) necessary for the controller’s or a third party's legitimate interests, except where overridden by the interests or fundamental rights and freedoms of the data subject.
These rules are almost identical to the core requirements for processing personal data in the old Data Protection Directive. The European Data Protection Board has issued Guidelines on the performance of a contract processing condition for online services (2/2019).
Are there any formalities to obtain consent to process personal data?
The requirements for consent under the GDPR are strict.
To be valid, consent must be in clear and plain language and, where sought in writing, separate from other matters. Consent must be based on affirmative action so pre-ticked boxes are not acceptable. Consent might not be valid if: (i) there is any detriment to the data subject for refusing; (ii) there is an imbalance of power; (iii) consent for multiple purposes is bundled together; or (iv) the consent is a condition of entering into a contract. Finally, consent can be withdrawn at any time.
In practice, other processing conditions should be relied on where possible. Consent will only be an appropriate processing condition if the individual has a genuine choice over the matter, for example, whether to be sent marketing materials.
The European Data Protection Board has issued Guidelines on consent (5/2020).
Are there any special rules when processing personal data about children?
Consent from a child in relation to online services will only be valid if authorised by a parent. A child is someone under 16 years old, though Member States may reduce this age to 13.
According to the Data Protection Act, children can provide valid consent if they are at least 13 years old.
Are there any special rules when processing personal data about employees?
The GDPR allows Member States to implement more specific national rules governing the processing of personal data about employees. It may also be possible to process special category personal data where it is necessary for a legal obligation in the field of employment law.
The Data Protection Act does not impose more specific rules governing the processing of personal data about employees.
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Sensitive Personal Data
What is sensitive personal data?
Special category data is personal data consisting of racial or ethnic origin, political opinions, religious or philosophical beliefs, or trade union membership, genetic data, biometric data, data concerning health or data concerning a natural person’s sex life or sexual orientation. The decision in OT (C-184/20) might suggest this should be interpreted broadly to include publication of information that indirectly discloses these characteristics.
The inclusion of genetic and biometric data is new and an extension to the types of sensitive personal data in the Data Protection Directive.
Information about criminal offences is dealt with separately and is subject to even tighter controls.
Are there additional rules for processing sensitive personal data?
Special category data may only be processed if a condition for processing special category data is satisfied. A condition arises where the processing: (a) is carried out with the data subject’s explicit consent; (b) is necessary for a legal obligation in the fields of employment, social security and social protection law; (c) is necessary to protect the vital interests of the data subject or another person where the data subject is unable to give consent; (d) is carried out by a non-profit-seeking body and relates to members of that body or persons who have regular contact; (e) relates to data made public by the data subject; (f) is necessary for legal claims; (g) is for reasons of substantial public interest under EU or Member State law; (h) is necessary for healthcare reasons; (i) is necessary for public health reasons; or (j) is necessary for archiving, scientific or historical research purposes or statistical purposes and is based on EU or Member State law.
Are there additional rules for processing information about criminal offences?
It is only possible to process personal data relating to criminal convictions or offences if: (a) it is carried out under the control of official authority; or (b) when the processing is authorised by EU or Member State law providing for appropriate safeguards for the rights and freedoms of data subjects.
According to the Data Protection Act, information on criminal offences may be processed: (i) by public authorities if processing is necessary to perform the tasks incumbent on that authority; or (ii) by private entities if processing is necessary for the purposes of pursuing a legitimate interest and such interest clearly overrides the interest of the data subject or the data subject has provided its explicit consent. The processing must also fulfil one of the conditions for processing personal data. Specific rules apply for transfer of such data.
Are there any formalities to obtain consent to process sensitive personal data?
Consent to process sensitive personal data must be explicit. The general restrictions on consent, set out above, will also apply. This suggests a degree of formality, such as ticking a box containing the express words “I consent”. It is unlikely explicit consent could be obtained through a course of conduct.
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Data Protection Officers
When must a data protection officer be appointed?
Both controllers and processors must appoint a data protection officer if: (i) they are a public authority; (ii) their core activities consist of regular and systematic monitoring of data subjects on a large scale; or (iii) their core activities consist of processing special category personal data on a large scale (including processing information about criminal offences).
Data protection officers must also be appointed where required by national law. However, the Data Protection Act contains no additional mandatory obligation to appoint data protection officers.
What are the duties of the data protection officer?
The data protection officer must be involved in all data protection issues and cannot be dismissed or penalised for performing their role. The data protection officer must report directly to the highest level of management. Details of the data protection officer must be communicated to the relevant supervisory authority.
The Article 29 Working Party has issued Guidelines on Data Protection Officers (WP243).
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Accountability and Privacy Impact Assessments
Is there a general accountability obligation?
The GDPR adds a new general accountability obligation under which you must not only comply with these new rules, but also be able to demonstrate you comply with them. This means ensuring suitable policies are in place supported by audit and training.
Are privacy impact assessments mandatory?
A privacy impact assessment must be conducted where “high risk” processing is carried out. This includes: (a) systematic and extensive profiling that produces legal effects or significantly affects individuals; (b) processing on a large scale either special categories of personal data or personal data relating to criminal convictions and offences; and (c) systematic monitoring of a publicly accessible area on a large scale (e.g. CCTV). Where the assessment indicates the risk cannot be mitigated, the controller must consult the relevant supervisory authority.
The Article 29 Working Party has subsequently issued Guidelines on Data Protection Impact Assessments (WP 248). It suggests there are nine criteria to consider to determine whether to conduct a privacy impact assessment, and that an assessment should be made if two or more of those criteria are met. This is arguably wider than the criteria set out in the paragraph above.
The Icelandic Data Protection Authority has issued Advertisement no. 828/2019 which lists the processing that is considered "high risk" and therefore requires a privacy impact assessment.
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Rights of Data Subjects
Privacy notices
A controller must provide data subjects with a privacy notice setting out how the individual’s personal data will be processed. The privacy notice must contain the enhanced transparency information.
The Article 29 Working Party has issued Guidelines on Transparency (WP260).
In Iceland, there is no obligation to provide this information in Icelandic, though it may be difficult to show that the information has been provided fairly if it is not in a language the data subject is familiar with.
However, the Data Protection Act provides that the obligation to inform is not applicable where the data subject’s interests are overridden by significant private interests connected to the information, including interests of the data subject itself. This can include private trade secrets.
The obligation to provide information is further restricted in the Data Protection Act. For example, in connection with national security, defence, public security, the protection of the data subject, significant public interests or the fundamental rights of others.
Rights to access information
Data subjects will have a right to access copies of their personal data by making a written request to the controller. The initial request is free, though a charge can be made for subsequent requests. Controllers can refuse the request if it is manifestly unfounded or excessive. The right to obtain a copy of personal data should not adversely affect the rights and freedoms of others. The response must be provided within a month, though this can be extended by two months if the request is complex.
The European Data Protection Board has issued Guidelines on rights of access (1/2022).
The Data Protection Act provides that the right to access information is not applicable where the data subject’s interests are overridden by significant private interests connected to the information, including interests of the data subject itself.
The right to access information is further restricted in the Data Protection Act, in relation to subjects such as national security, defence, public security, the protection of the data subject, significant public interests or the fundamental rights of others. If the data is a part of the controller’s working documents, used in the preparation of a decision by the controller, the controller can restrict access to such data. An example would be internal communication regarding dismissal of an employee. If the data has been transferred to a third party, the controller can however not rely on the exception from access.
Rights to data portability
Data subjects will also have a right to data portability where the condition for processing personal data is consent or the performance of a contract. It entitles individuals to obtain any personal data they have “provided” to the controller in a machine-readable format. Individuals can also ask for the data to be transferred directly from one controller to another. There is no right to charge fees for this service.
The Article 29 Working Party has issued Guidelines on data portability (WP242).
Right to be forgotten
A data subject can ask that their data be deleted in certain circumstances. However, those circumstances are relatively limited, for example where the processing is based on consent, that consent is withdrawn and there are no other grounds for processing. Even where the right does arise, there are range of exemptions, for example where there is a legal obligation to retain the data.
The European Data Protection Board has issued Guidelines on the criteria of the Right to be Forgotten in the search engines cases under the GDPR (part 1) (5/2019).
Objection to direct marketing
A data subject can object to their personal data being processed for direct marketing purposes at any time. This includes profiling to the extent related to direct marketing.
A data subject can register on a restricted registry held by Registers Iceland which lists individuals who do not wish to receive material for marketing purposes.
Other rights
The GDPR contains a range of other rights, including a right to have inaccurate data corrected. There is also a right to object to processing being carried out in the performance of a public task or under the legitimate interests condition.
Finally, there are controls on taking decisions based solely on automated decision making that produce legal effects or similarly significantly affects the data subject. The Article 29 Working Party has issued Guidelines on Automated Decision Making and Profiling (WP251).
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Security
Security requirements in order to protect personal data
The GDPR contains a general obligation to implement appropriate technical and organisational measures to protect personal data.
In addition, controllers and processors must ensure, where appropriate: (i) the pseudonymisation and encryption of personal data; (ii) the ability to ensure the ongoing confidentiality, integrity, availability and resilience of its information technology systems; (iii) the ability to restore the availability and access to personal data in a timely manner in the event of a physical or technical incident; and (iv) a process for regularly testing, assessing and evaluating the effectiveness of technical and organisational measures for ensuring the security of the processing.
Specific rules governing processing by third party agents (processors)
A controller must ensure that any processor it instructs will ensure adequate security for personal data and otherwise meet the requirements of the GDPR.
The controller must have written contracts with its processor containing the enhanced processor clauses.
Notice of breach laws
A personal data breach must be notified to the relevant supervisory authority unless it is unlikely to result in a risk to data subjects. The notification must, where feasible, be made within 72 hours. If the personal data breach is a high risk for data subjects, those data subjects must also be notified.
Specific notice of breach laws apply to the electronic communications sector under national laws implementing the Privacy and Electronic Communications Directive and to operators of essential services and digital service providers under national laws implementing the Network and Information Systems Directive.
The European Data Protection Board has issued Guidelines on Personal Data Breach Notification (9/2022) and Examples regarding Personal Data Breach Notification (1/2021).
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Transfer of Personal Data to Third Countries
Restrictions on transfers to third countries
The GDPR contains a restriction on transborder dataflows. This restriction does not apply if the transfer is to a whitelisted country.
Transfers can be made: (i) pursuant to a set of Standard Contractual Clauses; (ii) pursuant to binding corporate rules; (iii) to an importer who has signed up to an approved code or obtained an approved certification; or (iv) where otherwise approved by the relevant supervisory authority. However, following the decision in Schrems II (C-311/18) any transfer made on this basis must be subject to a transfer impact assessment of the laws of the relevant third country and supplemented by supplementary protections where necessary.
The European Data Protection Board has issued Recommendation on European Essential Guarantees for surveillance measures (2/2020) and a Recommendation on measures that supplement transfer tools (1/2020) to help conduct this transfer impact assessment. The European Commission has also issued an FAQ on the new Standard Contractual Clauses.
Transfers are also possible if an individual derogation applies. These derogations allow a transfer if it: (i) is made with the data subject’s explicit consent; (ii) is necessary for the performance of a contract with, or in the interests of, the data subject; (iii) is necessary or legally required on important public interest grounds, or for legal claims; (iv) is necessary to protect the vital interests of the data subject; (v) is made from a public register; or (vi) is made under the so-called minor transfer exemption.
The European Data Protection Board has issued Guidelines on derogations applicable to international transfers (2/2018). Finally, the European Data Protection Board has issued draft Guidelines on the interplay between Article 3 and international transfers (2/2018) to help identify when a transfer takes place.
The Minister of Justice has issued Advertisement No. 1155/2022, recognising that the whitelisted countries all provide adequate protection, thereby permitting the transfer of personal data to these countries.
Notification and approval of national regulator (including notification of use of Standard Contractual Clauses)
In general, there is no need for prior approval from a supervisory authority. However, this depends on the justification for the transfer.
For example, there will be no obligation to get approval for the use of Standard Contractual Clauses (though it is possible some supervisory authorities may want to be notified of their use). In contrast, it will be necessary to get approval to rely on binding corporate rules, and the supervisory authority must be informed of transfers made using the minor transfers exemption.
Use of binding corporate rules
The GDPR places binding corporate rules on a statutory footing. It will be possible to obtain authorisation from one supervisory authority (subject to approval through the consistency mechanism) that will cover transfers from anywhere in the EU.
In Iceland, no binding corporate rules have been approved.
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Enforcement
Fines
The GDPR is intended to make data protection a boardroom issue. It introduces an antitrust-type sanction regime with fines of up to 4% of annual worldwide turnover or €20m, whichever is the greater. These fines apply to breaches of many of the provisions of the GDPR, including failure to comply with the six general data quality principles or carrying out processing without satisfying a condition for processing personal data.
A limited number of breaches fall into a lower tier and so are subject to fines of up to 2% of annual worldwide turnover or €10m, whichever is the greater. Failing to notify a personal data breach or failing to put an adequate contract in place with a processor fall into this lower tier.
Fines can only be imposed where there is an intentional or negligent infringement of the GDPR, see Deutsche Wohnen (C-807/21).
The EDPB has published Guidelines on the calculation of administrative fines (04/2022).
Imprisonment
Iceland has indicated that major breaches can lead to imprisonment up to 3 years and breach of confidentiality of a data protection officer and employees and board members of the Data Protection Authority can lead to fines or imprisonment up to 1 year and, in severe cases, up to 3 years.
Compensation
Data subjects have a right to compensation in respect of material and non-material damage. This requires more than a mere infringement of the GDPR and there must be actual material or non-material damage, however there is no minimum threshold of seriousness before compensation is available, see Österreichische Post (C-300/21).
Other powers
Regulators have a range of other powers and sanctions at their disposal. This includes investigative powers, such as the ability to demand information from controllers and processors, and to carry out audits. They also have corrective powers enabling them to issue warnings or reprimands, to enforce an individual’s rights and to issue a temporary or permanent ban on processing.
Practice
Fines: The most significant fines issued by the Authority are set out below:
- In October 2023, Íþrótta- og sýningahöllin hf., a sports hall, was fined €23,400 for insufficient legal grounds for electronic surveillance, which took place, among other locations, in the accommodation facility for children and during mass vaccinations for Covid-19. This constituted unlawful processing of sensitive personal data.
- In July 2023, credit agency Creditinfo Lánstraust hf. was fined €253,400 for insufficient legal basis for data processing, following a complaint from the Consumers’ Association of Iceland.
- In July 2023, following the investigation into Creditinfo Lánstraust hf., the Icelandic DPA began an investigation into the loan company eCommerce 2020 ApS. The company was fined €50,200 after it was found that the company had sent information regarding defaults and personal data to the credit agency without sufficient provisions in their terms and conditions.
- In July 2023, following the investigation into CreditInfo Lánstraust hf., A.I.C ehf., a collection agency, was fined €23,500 for insufficient legal basis for data processing.
- In July 2023 the Icelandic Data Protection Authority imposed an administrative fine €80,400 on the Directorate of Health. The case revolved around a security breach allowing unauthorized access to sensitive data due to weaknesses of websites which violated data security requirements. The breach occurred when two individuals accessed unauthorized data. A weakness in the website allowed a logged-in user to access personally identifiable unauthorized messages by changing the connection string. Another flaw permitted logged-in users in the maternity care section to view attachments of other individuals in the medical record system by altering the URL.
- In May 2023, an administrative fine of €26,812 was imposed on the local community Kópavogsbær for using the Seesaw student system in its schools as there was a risk that personal data had been transferred to the US and processed there without appropriate protection measures as per the judgment of the ECJ on July 16, 2020, in case no. C-311/18 (Schrems II). The offense was therefore considered serious.
Other enforcement action: Based on information from the Authority in February 2024, the Authority has 350 cases for inspection (at administrative level). Based on numbers from 1 February 2024, in 2024 the Authority has registered 216 new cases, and in 2023 a total of 2082 cases were registered. In the last few years, the Authority has seen a considerable increase in the number of new cases.
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ePrivacy | Marketing and cookies
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National Legislation
ePrivacy laws
On 1 September 2022, the Electronic Communication Act No. 70/2022 (the “Electronic Communication Act”) entered into force. The Electronic Communication Act implements Directive (EU) 2018/1972 of the European Parliament and of the Council of 11 December 2018 establishing the European Electronic Communication Code into Icelandic legislation.
Act No. 75/2021 on the Electronic Communication Office (the “ECOI”), addresses the role of the supervisory authority in Iceland.
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Cookies
Conditions for use of cookies
Cookies can only be used with the informed consent of the user, except where the cookie is necessary for the operation of the webpage, i.e. the webpage does not function without the cookie.
Regulatory guidance on the use of cookies
No regulatory guidance on the use of cookies is in place yet.
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Marketing by E-mail
Conditions for direct marketing by e-mail to individual subscribers
Direct marketing by e-mail requires the prior consent of the recipient.
Conditions for direct marketing by e-mail to corporate subscribers
Direct marketing by e-mail requires the prior consent of the recipient.
Exemptions and other issues
The similar products and services exemption applies. According to the Electronic Communication Act, the use of automated calling systems, facsimile machines or electronic mail for direct marketing is only allowed if a subscriber has given prior consent.
Further, unsolicited electronic communications in the form of direct marketing are not allowed to be sent to subscribers who do not wish to receive these communications.
The sender must also include the eCommerce information.
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Marketing by Telephone
Conditions for direct marketing by telephone to individual subscribers (excludes automated calls)
It is not permitted to make direct marketing calls to individual subscribers who have: (i) previously objected to such calls; or (ii) requested not to receive such direct marketing calls by a listing in the National Registry or the telephone directory.
Conditions for direct marketing by telephone to corporate subscribers (excludes automated calls)
It is not permitted to make direct marketing calls to corporate subscribers who have either: (i) previously objected to such calls; or (ii) requested not to receive such direct marketing calls by a listing in the Company Registry or the telephone directory.
Exemptions and other issues
No exemptions apply.
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