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After violating the General Data Protection Regulation, Klarna has been hit with a fine of EUR 670000. The Swedish fintech company has been found guilty of not adequately informing users about the storage and processing of personal data.
The case revolves around privacy statements that were in use between March and June 2020, as reported by Reuters. Since then, Klarna has updated its privacy statements. The Swedish court determined that the information provided by Klarna was either unclear or difficult to access, which is a violation of the GDPR that requires European companies to inform users about the personal data they collect and how it is used.
In response to the violation, the Swedish court has fined Klarna 7.5 million Swedish krona, which amounts to 670000 euros. This is the same amount that the Swedish Data Authority had initially requested. A year ago, a lower court had ordered Klarna to pay 6 million Swedish crowns, approximately 536000 euros.
Klarna is known for its financial services that allow for post-payment options. Customers can order products through online stores and have up to 30 days after purchase to complete the payment. Additionally, Klarna offers savings accounts as part of its services.
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