Ethical instructions for Partners, including Prohibited and Restricted segments

Klarna has adopted these instructions to give partners and other external parties guidance on Klarna's ethical standards and other restrictions. Klarna's aim is to quickly and consistently be able to assess what is in accordance with its values and expectations.

Klarna strives to only cooperate with partners whose activities are in line with Klarna's desire of making payments and e-commerce safer. For Klarna, this means that Klarna's products and services may only be used for lawful purposes, and that ethical aspects of the partner's business are taken into account. As a major player Klarna aims to realize this vision and to have a positive influence on the market.

Judging upon ethical issues is subjective. Klarna will judge upon such issues in its sole discretion. Below are some general principles, which are exemplified in Prohibited and Restricted Segments. The examples listed as “Prohibited” are not allowed while examples listed as “Restricted” may be allowed under certain conditions and upon pre-approval from Klarna.

Klarna shall not cooperate with partners, which sell products or carry out services with means and methods that are misleading, deceptive, abusive or unfair to customers, or otherwise unethical or illegal.

A partner’s means of marketing, advertising, distribution channels and reputation shall be considered when assessing if the business practice is unethical or contrary to consumer protection legislation. Klarna may also take into account links to/from such a partner's website and other associations. Klarna shall make a global, proportionate, case-by-case assessment of each partner, and decide in its sole discretion what is acceptable.

Klarna will not cooperate with partners providing products or services which Klarna considers, in its sole discretion, as unethical under these instructions.

Some products can be categorized as products of dual use, meaning that they may have a legitimate use, but also an illegitimate use. When assessing partners providing products of dual use, Klarna will try to determine if its typical end customers intend to use the product in an illegitimate way and if the partner supports such use. Klarna shall make an overall assessment of the partner, its business practices, its conduct in general and its product portfolio.

In provision of some services, Klarna cooperates with various partners (e.g. third party payment option providers and partners to complete payouts). Several of these partners apply their own prohibitions and restrictions. This means that additional prohibitions and restrictions apply for partners, who wish to use such services. 

Klarna reserves the right to accept or reject a partner selling (i) any product or service that infringes upon, or run a significant risk to infringe upon the copyright, trademark or trade secrets of any third party, or (ii) any product, service or activity that is deceptive, unfair, predatory or is otherwise prohibited or restricted by one or more partners.

Information on partner prohibitions or restrictions may be provided upon request (subject to confidentiality provisions).

If a partner fails to comply with these instructions, depending on severity or other relevant circumstances, Klarna may temporarily suspend the provision of the services and/or give the partner an opportunity to adjust to meet the requirements set out by these instructions. Alternatively, Klarna may terminate the cooperation agreement with such a partner. 

The following restrictions and prohibitions have been defined as a part of Klarna’s instructions on what ethical stance to make for products, services and practices in partnerships. The lists with items in the tables below are not exhaustive, hence Klarna may in sole discretion decide on businesses, concepts, products and services that are not allowed to process via Klarna’s services. The assessment of prohibited and restricted businesses is based on: 

• Laws and regulations
• Third party restrictions 
• Market individual adaptations 
• Risk appetite

None of the prohibited items or services listed below can be processed using Klarna’s services. For items being defined as restricted, a restriction might indicate limitations in markets, products, items, volume or marketing that can be allowed and shall not be processed without Klarna’s approval. In addition, all products and services that utilize card payments also need to fulfill AMEX, Mastercard and VISA scheme rules. 

Segments listed below will only be allowed with the pre-approval from Klarna and subject to any conditions that Klarna may impose at its sole discretion.