The Design and Distribution Obligations (DDO) are laws overseen by the Australian Securities and Investments Commission (ASIC), which came into effect on 5th October 2021. These laws aim to help consumers obtain appropriate financial products.
Under these regulations, if you are promoting or recommending Klarna or Klarna’s products, you may be considered a “distributor” of Klarna Pay in 4 product in Australia must take reasonable steps to ensure Klarna is being promoted to its target market only, as set by the Klarna Pay in 4 Target Market Determination (“TMD”).
A TMD is exactly as it sounds. It describes the type of customers that the product has been designed for and targeted to; and ensures customers' are front and centre when considering which financial products are suitable for them.
Klarna’s Pay in 4 is targeted at consumers who want the flexibility to buy what they love today and spread the cost of their purchase over time.
Klarna’s Pay in 4 is available to consumers who:
Customers who do not fulfill the above criteria are assessed as not suitable to use Klarna’s Pay in 4. If you are a distributor, you are obligated to review Klarna’s full Target Market Determination and promote Klarna’s Pay in 4 product consistent with the TMD.
When promoting or recommending Klarna to your customers, you may be required to take steps to ensure that you’re doing so consistently with our Target Market Determination.