Specifically, Klarna has been ordered by a Swedish court of appeal to pay a fine of SEK 7.5 million for breaching the EU's General Data Protection Regulation (GDPR). The violation occurred due to Klarna's failure to provide adequate information to its users regarding the storage of their personal data. The court stated that the information provided was unclear or difficult to access.
The case pertained to privacy notes used by Klarna between March and June 2020, which have since been updated by the company, according to a previous statement issued by Klarna and cited by Reuters. A spokesperson for Klarna informed Reuters on Monday that they had just received the court's decision and it was premature to offer any comments.
According to the GDPR regulations of the European Union, companies are legally required to inform users and clients about the handling of their personal data, including the methods of collection and the duration of storage. The Swedish Administrative Court of Appeal reinstated the penalty to the original amount of 7.5 million crowns, as sought by the Swedish Data Protection Agency (SDPA). In a previous ruling in 2023, a lower court had ordered Klarna to pay SEK 6 million.
Klarna stated that the case stemmed from an audit conducted by the SDPA on the privacy information provided to clients in 2020 and clarified that it was not related to the company's data collection or handling practices.
In February 2024, Klarna advanced its strategy for a potential US listing for a valuation of USD 20 billion. The Buy Now, Pay Later (BNPL) company started discussing with investment banks to work on an initial public offering that could happen in the third quarter of 2024, with Klarna considering seeking a valuation of approximately USD 20 billion. As mentioned by Bloomberg, negotiations are still ongoing and details of the offering, including valuation and timing, were not disclosed.
In January 2024, to expand its services in the US, Klarna announced the launch of Klarna Plus, issued by WebBank, to eligible customers through its app. The service aimed to allow members to improve their Klarna experience by receiving access to several capabilities and offers, including waived service fees on the company’s One Time Card product, double reward points, and special deals with various brands.
For more information about Klarna, please check out their detailed profile in our dedicated, industry-specific Company Database.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now