Norway's Consumer Council has referred Klarna to the country's Consumer Authority over an alleged failure to provide clear details about interest paid on its buy now, pay later products.
According to the Consumer Council, Klarna is failing to comply with rules that require clear signage about terms and conditions of credit by omitting or burying this information from its online advertising and Website.
“We believe Klarna is not complying with the marketing regulations for credit,” says Guro Sollien Eriksrud from the Consumer Council.
Responding, to the ellegations, a Klarna spokesperson says: "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."
Klarna is also in hot water in the Netherlands, where a Dutch court recently ruled that the company could not prove that it avoided profit from late fees.
The judge pointed to signs that Klarna may be acting like a lender, which would trigger stricter regulation.
The Dutch government has also moved to stop the spread of buy now, pay later services onto the high street, asking Klarna to reconsider its plans to move into physical stores.
The firm faced further regulatory pressure in December, when it was fined Skr500 million ($50 million) by Sweden’s Financial Supervisory Authority, for anti-money laundering defects.