Norway’s Consumer Council has referred Klarna to the country’s Consumer Authority, alleging that the firm has failed to provide clear information regarding interest rates on its buy now, pay later (BNPL) products.
The Council claims Klarna is not adhering to rules that require transparent disclosure of credit terms and conditions, arguing that this information is either omitted or obscured in the company’s online advertising and on its website.
“We believe Klarna is not complying with the marketing regulations for credit,”
said Guro Sollien Eriksrud of the Consumer Council.
Klarna is also facing scrutiny in the Netherlands, where a Dutch court recently ruled that the company failed to prove it did not profit from late payment fees, according to Finextra.
The judge indicated that Klarna may be operating in a manner similar to a lender, which would subject it to stricter regulatory oversight.
In addition, the Dutch government has urged Klarna to reconsider plans to expand into physical retail spaces, aiming to curb the spread of BNPL services on the high street.
The company was further penalised in December when Sweden’s Financial Supervisory Authority imposed a fine of SEK 500 million (approximately £38 million) for shortcomings related to anti-money laundering measures.
Featured image credit: Klarna
