Klarna Docs - Ethical instructions for Partners, including Prohibited and Restricted segments

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.

Klarna's products and services may only be used for lawful purposes. In addition, Klarna wants to prevent our products and services from being used in an unethical way. If a partner, which uses Klarna’s services, acts in an unethical way or sells goods and services which are unethical, it may harm the public's confidence in both the merchant and Klarna and introduce customer harm. To reduce this risk Klarna has adopted the following Ethical Instructions for Partners.

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. 

Abuse of Klarna services
  • Content, products, marketing or services encouraging or in other ways inappropriately related to hate, violence, racism or discrimination
  • Delivery methods that may cause suffering to animals
  • Possession or association with sites, products or services which are contrary to these instructions 
  • Products, services or practices that encourage crime or may provide support to illegal activities, e.g. unregistered/unauthorized weapons or products and services that support extremist or terror actions or organizations.
  • Products or services, or practises which are intended to cause danger, injury or suffering to humans or animals
  • Trade with protected animals or plants or products originating from protected animals or plants
Adult
  • Prostitution and escort services, sexually oriented massage parlors; gentleman's clubs, topless bars, and strip clubs
  • Products or services (including images and marketing) related to pedophelia, non-consensual sexual behavior, sexual exploitation of a minor, non-consensual mutilation of a person or body part
  • Products related to bestiality
Deceptive or unfair marketing
  • Negative response marketing
  • Practices misleading or deceiving consumers or discarding or avoiding consumer protection laws
  • Pyramid type schemes for marketing, distribution and sales
Drugs and legally derived substances and products
  • Illegal drugs and substances (or substitutes to such), and products typically used for manufacturing or using such products
  • Products or services associated with illegal drugs
  • Pseudo pharmaceuticals
  • Substances designed to mimic illegal drugs
Financial and legal services
  • Financial advice and investment services,
  • Financial services provided without appropriate licenses as required by law
  • Financial services, including Down payment, High risk securities, Share dealing services ('Tipser'), Short term payday loans, Tax evasion services, Timeshares,
  • Legal advice and services
Gambling
  • Gambling, betting or lotteries provided without appropriate license as required by law
High risk industries, goods and services
  • High risk industries, including Crowdfunding, Embassies, Foreign consulates, Get rich schemes, Penny auctions, Pyramid and ponzi schemes 
Illegal products or services
  • Counterfeit products and illegally acquired goods, including Copyright infringements, Services designed to promote infringements of intellectual property rights, e.g. by bonus programs for uploading unauthorized digital content and unauthorized file sharing or streaming, Unlicensed copies
  • Goods and services, or marketing of such, violating any law
  • Orders, services and practices that relates to any form of illegal activity, including without limitation: money laundering, terrorist financing, human trafficking, political corruption, vat fraud, tax evasion and illegal wildlife trafficking
  • Illegal business methods, practices, products or services
  • Practices misleading or deceiving consumers or discarding or avoiding consumer protection laws
  • Practices or methods constituting acts of modern slavery in any part of a business or its supply chains. Such practices or methods include any deprivation of a person’s liberty in order to exploit them for personal or commercial gain
  • Products and services provided without license as required by law
  • Sanctioned goods or services, or goods or services originating from sanctioned countries or individuals, including Travel to and accommodation in countries subject to sanctions

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.

Adult
  • Adult, sexual or pornographic products and services, including live web cameras
Drugs and legally derived substances and products
  • CBD
  • Drug paraphernalia
  • Nutraceuticals
  • Pharmaceuticals
Financial and legal services
  • Money services, including Binary options, Currency exchange, Money transfer, Virtual, digital and crypto currencies, tokens, and other crypto assets
  • Bailiffs, Bankruptcy/Insolvency services, Claims management, Debt collection management agencies
Gambling
  • Gambling, betting, lotteries provided with appropriate license
High risk industries, products and services
  • Age restricted services or products, including Alcohol, E-cigarettes, Vape, Tobacco and tobacco substitutes
  • High risk products, including but not limited to;
    1. Art and antiques, 
    2. Digital downloads (e.g. film and music download/streaming), 
    3. Providing or hosting unethical or unauthorized content,
    4. Dual use products (that may both have a legitimate and a illegitimate use), 
    5. Fireworks, 
    6. In game purchases, 
    7. Jewelry, 
    8. Medical devices, 
    9. Precious metal and gems, 
    10. Prepaid phone services, 
    11. Replica weapons, 
    12. Soft air gun and related accessories, 
    13. Self diagnosis test for diseases, 
    14. Weapons and armaments, 
    15. Prescription eyewear, 
    16. Vouchers/Gift cards 
  • High risk industries, including Auction houses, Charities, Marketplaces, Multi level marketing, Pawn shops, Political organisations parties or initiatives
  • High risk services, including File sharing, file hosting, File storage, Medical treatments and surgeries, Testing labs
  • Financial services, including insurances
Travel, Tour and Events
  • Airlines & Cruise lines 
  • Event organizers and ticketing platforms
  • Hotels and other accommodations 
  • Rentals & housing
  • Tour agencies & Tour operators