Klarna disagrees with the Swedish Data Protection Authority's (IMY) decision to impose a fine of converted €728,000 on the payment service for violating the AVG. The Swedish fintech company is appealing the decision.
So states Klarna in a blog on its own site. The company provides online financial services, including direct payments and post-purchase payments.
The IMY imposed the fine because Klarna did not provide enough information about the processing of customers' personal data. According to the payment service, the IMY's decision is ambiguous and without a clear explanation. Moreover, Klarna feels that the IMY does not provide proper guidance on the implementation of AVG guidelines. The payment service hopes to get more clarity on this in appeal.
According to the IMY, Klarna kept changing the information on its website about how the company handles customers' personal data. Moreover, between March and June 2020, Klarna's privacy statement would not have clearly stated how, why and on what legal basis the company collects and processes customers' personal data. The website also allegedly lacked information about the external parties and non-EU countries to whom Klarna provides personal data. Furthermore, according to the IMY, Klarna was not transparent about the privacy rights customers have, such as the right to access (view collected data), rectification (have collected data adjusted) and oblivion (have collected data deleted).
Klarna responds to the allegations that the privacy statement on the website does indeed change regularly, but that this is mainly to ensure that the information therein remains up-to-date. In addition, Klarna states that while privacy information must be accessible and clear according to the law, the AVG does not further clarify what is sufficient or insufficient when it comes to passing on this information.
This is not the first time Klarna has had to deal with the IMY. Back in 2019, the IMY requested information about communication around data processing by Klarna. In 2020, the IMY asked an additional question and in 2022 the IMY's final decision on the fine followed.
Klarna claims that in the meantime, it was already making changes to improve the information surrounding data processing. For example, the company created an "information hub" that contains clearer information about data processing than its allegedly long and complicated privacy statement. In addition, the company reveals that it is currently considering ways to improve the customer experience around data and privacy.
