The UK’s advertising watchdog has banned an Instagram campaign by Klarna for its “buy now, pay later” service.
The Advertising Standards Authority (ASA) found that the ads “irresponsibly” encouraged the use of credit to improve people’s mood during the pandemic.
The Swedish firm, founded in 2005, offers a range of payment options, including instalment plans. It has more than 90 million users globally.
Klarna ran a social media campaign on Instagram in April and May using four influencers to encourage people to use Klarna to shop.
The influences posted about ‘splurging’ on skincare brands and clothes during lockdown, while at the same time promoting Klarna.
The ads were referred to ASA by Stella Creasy MP for encouraging the use of Klarna’s deferred payment service to help people lift their low mood.
In response to the claims, Klarna said the ads were intended “to highlight that self-care, skincare routines and pampering could be beneficial for improving one’s mental health and staying entertained during the lockdown period.”
However, ASA concluded that “in the context of the challenging circumstances caused by the lockdown at the time, including impacts on people’s financial and mental health, the ads irresponsibly encouraged the use of credit to improve people’s mood.”
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