Klarna Cited Again in Norway Over Credit Rules
Hey Payments Fanatic!
Klarna is back in the spotlight, this time in Norway. The country’s Consumer Council has reported the company to the Consumer Authority, claiming Klarna is not following the rules when offering credit.
The issue is not just what Klarna offers, but how it presents the cost of buying with credit. Norwegian law requires companies to clearly explain what customers are signing up for, including examples with interest rates. According to the Consumer Council, Klarna leaves this out of posters, online shops, and across its ads.
“We believe Klarna is not complying with the marketing regulations for credit,” said Guro Sollien Eriksrud from the Consumer Council. Klarna confirmed the complaint was received but did not share further details.
This is not the first warning. Last year, Norway’s Financial Supervisory Authority said Buy Now Pay Later services count as credit, which means companies like Klarna must run credit checks before allowing customers to delay payments.
The pressure is growing across borders. A few weeks ago, a Dutch court ruled against Klarna, saying it did not prove it avoided profit from late fees. The judge pointed to signs that Klarna may be acting like a lender, which would trigger stricter regulation.
For Klarna, the question now is whether its model can hold up under closer inspection or if it will need to adapt.
Enjoy more payments industry updates below👇 and I'll be back tomorrow!
Cheers,
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