1.
Introduction
Klarna strives to only cooperate with Merchants whose activities are in line with Klarna's vision of
making payments and e-commerce safer. For Klarna, this means that ethical aspects of the
Merchant's business are taken into account. As a major player we aim to "pull our weight" in
realizing this vision and to have a positive influence on the market.
Klarna's products and services may only be used for lawful purposes. In addition, we want to
prevent our products and services from being used in an unethical way. If a Merchant, which uses
Klarna's services, acts in an unethical way or sells goods and services which are in some way
unethical or immoral, it could harm the public's confidence in both the Merchant and Klarna. To
reduce this risk Klarna has adopted the following Instructions for Merchants.
2. Background and purpose
Klarna has adopted these Instructions to give employees, Merchants and other external parties
guidance on Klarna's ethical standards. Klarna's aim is to quickly and consistently be able to assess
what is in accordance with its values and expectations and communicate this to the Merchants.
3.
Principles
Judging upon moral or ethical issues is subjective. Klarna will judge upon such issues in its sole
discretion. Below are some general principles, which are exemplified in the Appendixes. The
examples listed as “Prohibited” are completely disallowed while “Restricted” are allowed under
certain conditions and upon pre-approval from Klarna.
4. Prohibited Merchants
Klarna is a non-political group of companies and has therefore taken the decision to not cooperate
with any political organisation or party.
5.
Unethical Business Methods and Practices
Klarna shall not cooperate with Merchants, which sell products or carry out services with means
and methods that can be regarded as intrusive, misleading, abusive, and disadvantageous to endcustomers or in any other way unethical.
The Merchant's means of marketing, advertising, distribution channels and reputation shall be
considered when assessing if the business practice is unethical. Klarna may also take into account
links to/from the Merchant site and other associations f.ex. in web forums. There is a reputational
risk for both the Merchant and Klarna if the Merchant is associated with anything unethical.
Klarna shall make a global, proportionate, case-by-case assessment of each Merchant and decides
in its sole discretion what is acceptable.
For examples of unethical business practices and methods - see Appendix 1.
6.
Unethical Products and Services
Klarna will not cooperate with Merchants providing products or services, which Klarna considers
as unethical.
Certain products can be categorized as products of dual use, meaning that they may have a
legitimate use, but also an apparent illegitimate use. When assessing Merchants providing
products of dual use, Klarna should try to determine if its typical end-customers intend to use the
product in an illegitimate way and if the Merchant supports such use. For example, a large
proportion of products of dual use would suggest that a Merchant supports the illegitimate use.
Klarna shall make an overall assessment of the Merchant in question and pay attention to the
Merchant's business practice and conduct in general and its product portfolio.
Klarna's assessment shall be proportionate which means that in some cases a Merchant, which
sells unethical, but legal, products, can be accepted if such products represent a minor part of the
business.
For examples of unethical products and services - see Appendix 2.
7.
Klarna Checkout
In Klarna Checkout (KCO), Klarna cooperates with various partners. Several of these partners
apply their own restrictions. This means that additional restrictions apply for Merchants, who
wishes to use KCO. For examples of such partner driven restrictions – see Appendix 3.
8. Sanctions
If a Merchant fails to comply with these Instructions, Klarna may terminate the cooperation
contract. Alternatively, and depending on the severity, Klarna may give the Merchant an
opportunity to improve.
9. Division of responsibility
Each Country Sales Manager shall ensure that all prospective Merchants, which are brought to the
due diligence process are compliant with these Instructions to the best of his/her knowledge. Any
uncertainties regarding a prospective or existing Merchant shall be highlighted by the responsible
Sales person to the Merchant Decisions Department.
The Merchant Decisions Department is responsible for investigating any suspected noncompliance with these Instructions for both prospective and existing Merchants, as well as
terminating existing cooperations when needed. Furthermore, the Merchant Decisions
Department is responsible for ensuring that each Merchant is reviewed from an ethical perspective
in the due diligence process, taking these Instructions and previous cases into consideration and
when needed escalate cases to the Ethical Committee described in Klarna's Ethics and
Environmental Policy.
Customer Service and other departments shall inform the Merchant Decision Department about
any suspicious cases.
Exceptions from these Instructions may only be granted by Klarna's Ethical Committee or in
accordance with the escalation process in the Ethics and Environmental Policy.
10. Adoption and revisions
These Instructions shall be adopted by the COO. The Compliance Director is responsible for
keeping them updated. The Instructions shall be revised annually or when required.
11. Relevant documents
Klarna's Ethics and Environmental Policy
Examples of prohibited and restricted business practices and methods:
Prohibited








Marketing, distribution or other handling of products or services in Appendix 2
Practices and methods abusing cross-border trading for VAT fraud, tax evasion, avoiding
consumer protection rules etc
Pyramid type schemes for marketing, distribution and sales
Door-to-door sales
Any type of practices misleading or confusing consumers or discarding consumer
protection laws
Possession of, or association with, sites, products or services which without doubt can be
considered as unethical, immoral or unlawful
Use of workforce, for which tax is not declared or without any work permit
Delivery methods that may cause suffering to animals
Restricted


Aggressive or misleading marketing
Business practices, which in any other way are controversial and/or may cause the
Merchant and Klarna reputational harm
Examples of prohibited and restricted products and services:
Prohibited














Illegal products or services
Products that encourage crime or may provide support to illegal activities
Illegal substances, such as drugs, and products typically used for manufacturing or using
such
Unlicensed copies and other products infringing intellectual property rights
Replicas, such as fake merchandise
Gambling, gaming or lotteries provided without appropriate licenses
Products or services, which can inflict danger, injury or suffering to humans or animals
Content encouraging or in other ways inappropriately related to hate, violence, racism or
discrimination
Sexual or pornographic services, such as:
o Prostitution
o Escort services
o Live web cam
The sale of a product or service, including an image, which is patently offensive and lacks
serious artistic value (such as, by way of example and not limitation, images of
nonconsensual sexual behavior, sexual exploitation of a minor, nonconsensual mutilation
of a person or body part, and bestiality).
Financial products or services, such as:
o Savings or investment services
o Financial advice or subscriptions
Timeshares
Donations to political parties or initiatives
Transactions that provide the end-customer with cash, such as currency exchange
Restricted



Tobacco products or substitutes thereof, such as electronic cigarettes
Alcohol products
Armaments, including replicas, soft air guns, knives etc.
These partner driven restrictions can be based on both ethical and/or financial considerations.
Prohibited

Armaments & Weapons
o

Investment opportunities
o
o

Free trials or other marketing activity which requires a negative response from
the cardholders and binds them to long term subscriptions
Penny auctions
o
o
o

Guarantees
Memberships/clubs
Negative response marketing
o

Ponzi type schemes with reliance upon a continual stream of new participants
Get rich quick schemes
Lifetime products
o
o

Weapons such as guns, rifles, heavy knives etc. Hunting stores are acceptable
with the exception of those selling the products mentioned previously. Paintball,
and hunting knives distinctly meant for hunting purposes are accepted.
Purchase of bid credits
Open ended auctions
Repeat / automated bids
Tobacco
o
o
Cigarettes / Cigars
Pipe / Snuff tobacco
Restricted

Adult
o
o
o
o

Physical goods
Dating agencies
Erotic images / downloads
Chat lines
Airlines
o
o
Scheduled
Non-scheduled / charter flights


Auctions
Coin Merchants
o

Computer
o
o
o
o

Casino / poker / lotteries
Contracts for difference / Binary
Raffles and prize draws
Pay to play games
Home furnishing
o
o
o

Guaranteed results
Seminar download
Gambling / gaming
o
o
o
o

CV-services
Guaranteed placement
Educational Seminars
o
o

Daily vouchers websites
Deal of the day
Employment agencies
o
o

Film and music download/streaming
Discount vouchers (3rd party)
o
o

File sharing
File hosting
File storage
Digital downloads
o

Computer maintenance / repair services
Computer network / information services / data retrieval services
Computer software stores
Website hosting
Cyberlockers
o
o
o

Dealers / Investments
Furniture
Carpets
Bathroom / kitchens
Marketing
o
o
o
Multi-level marketing
Online marketing services / web design / SEO services
Outbound telemarketing / inbound telemarketing

Motor vehicle supplies / parts
o

Nutraceutical
o
o

Hotels
Cruises
Tours
Virus protection products and services
o
o

Ticket brokers / agents / resellers
Travel agencies / tour operators
o
o
o

Prepaid phone cards and services
VOIP
Ticket agencies
o

E-wallets
Gift / pre-paid cards
Telecom
o
o

Prescription drugs
Pharmacists and chemists
Stored Value Load
o
o

Provision of transaction or processing to sub merchants / third parties
Pharmaceuticals
o
o

Vitamin and / or herbal selling in Europe
Weight loss centres / muscle gain
Payment facilitators
o

Trading ecom only, no physical outlets or trading from domestic address
High pressure sales
Unsolicited marketing approach
Warranties not provided by the manufacturer
o
Third party provider e.g. satellite services / maintenance
Klarna AB
Org nr: 556737-0431
Sveavägen 46
SE-111 34 Stockholm
Tel: +46 (0)8 - 120 120 00
Web: www.klarna.com
E-mail: [email protected]