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In a submission to the Norwegian Consumer Authority, the consumer advocacy group has accused the Swedish fintech firm of repeatedly violating Norway’s credit marketing regulations.

The Norwegian Consumer Council  that Klarna is consistently failing to properly inform customers about the potential costs of using credit when paying for goods, both online and in physical stores. 

Under Norway’s Financial Contracts Regulations, credit marketing must clearly display the effective interest rate, a representative example, and the total cost of borrowing, but the Council says that Klarna’s marketing often omits or obscures such details.

The organisation has highlighted several examples, including a case in which a new Klarna customer was granted a NOK140,000 (€12,150) credit limit but was shown an example calculation based on borrowing just NOK5,000 (€433), only a fraction of the total credit offered. 

The Council argues that these examples do not accurately represent the potential financial burden on consumers.

“We experience and are concerned that young consumers in particular do not perceive that “taking it on Klarna” is the same as buying on credit,” said Guro Sollien Eriksrud, head of consumer economics at the Norwegian Consumer Council.

“Klarna must ensure that the costs of the credit purchase are clearly stated, so that people can assess the consequences of what they are doing.”

In response to the accusation, a spokesperson for Klarna has said: “we have not yet learned whether the authority will investigate the complaint but will of course respond when and if they reach out formally.” 

“With that said, we naturally follow all applicable laws and regulations. If something needs adjusting, we will of course do so promptly. We always strive to communicate as clearly as possible with our customers."

Increasing consumer debt

The consumer group has also raised concerns over Klarna’s practice of automatically suggesting the maximum available credit limit during the application process, which it believes encourages consumers to take on more debt than necessary.

The complaint comes amid rising concern about consumer debt in Norway. According to data from the Norwegian Debt Register, overall consumer debt has increased over the past year, with buy now, pay later (BNPL) services contributing to that growth. 

Although men account for most of Norway’s total consumer debt, the sharpest increase has been among younger consumers, particularly women. The Council suggests that Klarna purchases are playing a significant role in this trend.

This echoes concerns in countries such as the Netherlands, where the government has also shown a lack of enthusiasm for BNPL becoming a disrupter at the checkout. 

As covered by 91����ԭ��, in January, Dutch government ministers asked BNPL providers including Klarna to refrain from offering their services in physical stores, due to concerns of over-indebtedness among the young and vulnerable.

As part of the complaint, the Consumer Council is also calling for credit to be removed as a pre-selected payment option during checkout. 

Finland has already introduced similar measures to promote upfront payments.

This is not the first time Klarna’s BNPL offerings have come under scrutiny in Norway. 

In 2024, the Norwegian Consumer Authority ruled that Klarna was breaching the law by offering BNPL without entering into formal credit agreements with customers. 

Despite that decision, the Consumer Council claims Klarna continues to ignore key regulatory requirements in its marketing.

“Even small amounts can quickly become a lot when there are many of them. Such payment solutions are potential debt traps because it seems so innocent with small amounts and an interest-free period,” said Sollien Eriksrud. 

“High credit debt can, among other things, affect your health and the possibility of getting a mortgage.”