The Consumer Agency has issued an administrative fine of ISK 1 million (USD 8,620, EUR 6,450) to clothing manufacturer Drífa ehf., which produces clothes under the name Icewear and Norwear, for having used misleading labels.
The labels indicated that the products were made in Iceland with Icelandic materials when they are in fact made abroad from foreign materials, visir.is reports.
Drífa’s labeling on products such as woolen mittens and hats were marked with an Icelandic flag but the country of origin was not specifically stated.
As reported, the Federation of Icelandic Industries (SÍ) brought charges against the company last year, claiming that the company’s labeling was in breach of the laws on business and marketing due to incorrect information about the products’ origins.
In response, the Consumer Agency concluded that the labeling was misleading and banned the company from using the label without also stating the product’s country of origin. The agency warned that if action was not taken on the labeling, the company would be fined.
Controversy arose in 2012 when it was discovered that some companies were producing traditional Icelandic woolen sweaters abroad, primarily in China, but sold them as being made in Iceland.