Australia & New Zealand
Version: 24.11
Latest update: 24 February 2025
The following general terms and conditions (GTC) are incorporated by reference into and form part of the Cooperation Agreement between the Merchant and Klarna (Agreement). Any words or phrases beginning with a capital letter not already defined in these GTCs have the meaning set out in the Agreement. In the case of any discrepancy or inconsistency between the GTC and the Agreement, the relevant provision under the GTC shall control unless specifically stated otherwise.
1. Authorization and capture
1.1. In order to provide the Shopping Solutions, Klarna grants the Merchant access to Klarna’s business transaction system (the Merchant Portal). The Merchant agrees to protect its log-in details to the Merchant Portal and will be fully responsible for any actions taken when the Merchant’s log-in details to the Merchant Portal are used.
1.2 Where the shopper makes a purchase from the Merchant and uses a Shopping Solution to pay for the purchase (such shopper hereinafter referred to as the Customer), the Parties agree that Klarna shall have the exclusive right to receive payment for the purchase. Such right to collect payment is hereinafter referred to as a Claim. Except as otherwise set forth in this Agreement, Klarna assumes all credit risk related to any Customer’s non-payment in relation to such Claims.
1.3 The Merchant has the right to receive payment from Klarna for a Claim in accordance with Section 2 of the main body of this Agreement as of the time of dispatch/shipment of goods or performance of services by the Merchant, or as otherwise approved by Klarna in writing (Capture). The dispatch of the goods/performance of the services is to be made as close to the date of the order as possible and within the timeframe communicated to the Customer during the order. Capture cannot be made by the Merchant after the order has expired in the Merchant Portal.
1.4 Unless otherwise agreed, when using the Shopping Solutions, the Merchant is not entitled to offer delivery to a recipient or an address other than as pre-approved by Klarna.
2. Klarna’s general responsibilities
2.1 Klarna is responsible for all credit decisions, financing, administration and customer service in respect of the Shopping Solutions. Unless otherwise agreed, payments of goods/services via the Shopping Solutions are only available to consumers (not businesses). Klarna may refer Customer enquiries to the Merchant where the Merchant fails to provide Klarna with detailed and up-to-date information on goods purchased, fees charged and/or goods returned/canceled that would allow Klarna to otherwise respond to such enquiries. In relation to Claims, Klarna will handle the payment collection and any related administration.
2.2 Klarna’s Merchant Protection Program, available at
, offers protection against certain Customer complaints.3. Merchant’s general responsibilities
3.1 The Shopping Solutions will be presented and integrated in accordance with Appendix 5 (Integration Features) and as otherwise agreed between the Parties. The Merchant accepts that Klarna and the Shopping Solutions may not be marketed (either in its own or third party media) without prior approval from Klarna, and the Merchant warrants that in relation to any marketing, it will observe and comply with all applicable laws and regulations and other provisions and guidelines issued by any public authority.
3.2 To the extent specific sales tax or other tax information is required to be shared with the Customer, Merchant will provide the Customer with an order confirmation or any other document that contains such information. Any such aforementioned documents may not contain any bank details of the Merchant as payment is still to be made to Klarna. Should the content of the document sent out by the Merchant lead to an increased number of complaints (e.g. due to Customers paying to the Merchant’s bank account or using incorrect reference numbers), the Parties shall in good faith agree on any adjustments to the content of such documentation to mitigate such issues.
3.3 In relation to the Merchant’s unique log-in details to the Merchant Portal, the Merchant will ensure compliance with the applicable Access Management Requirements (available under
). The Merchant is responsible for any actions taken when the log-in details to the Merchant Portal are used. The Merchant is not entitled to use the authorization option in the Merchant Portal solely for credit checks without having the intention of accepting payment from the shopper by means of a Shopping Solution.3.4 The Merchant warrants to comply with applicable laws and further warrants that it has and at all times shall maintain and uphold all necessary permits, insurances and licenses required for its business, its business operations and business activities. Upon request, the Merchant shall provide Klarna with any documentation or other information verifying that the Merchant upholds valid permits and licenses. Further, the Merchant warrants that all Claims are connected to purchases which are permitted under and in compliance with all applicable laws. Klarna has the right to suspend the provision of the Shopping Solutions at any time if Klarna determines that the provision of the Shopping Solutions, the Shopping Solutions themselves, or the Merchant’s activities, could be deemed illegal, unethical or in any other way non-compliant with any applicable rule or regulation, or result in negative publicity for Klarna.
3.5 To the extent the Merchant acts as a marketplace where Sub-merchants (as defined below) will deliver the goods to the Customers, the Merchant is fully liable for all Sub-merchants and for the Sub-merchants’ fulfillment of its obligations in relation to Customers. The Parties acknowledge and agree that Klarna may itself, or may require the Merchant to, at any time (e.g. due to a Sub-merchant’s non-compliance with applicable laws or Klarna’s instructions) block or in any other way terminate the provision of the Shopping Solutions in relation to purchases relating to a specific Sub-merchant.The Merchant may not grant any Sub-merchant access to the Merchant Portal. Sub-merchants means a merchant that sells or ships products in connection with a Customer’s purchase in the Merchant’s Store. For the avoidance of doubt, courier or delivery companies, such as UPS or FedEx, or any other such similar company, are not considered Sub-merchants for the purpose of this Agreement.
3.6 The Merchant agrees to use best efforts to assist Klarna in mitigating and/or stopping fraudulent transactions. Any request for assistance must be actioned without undue delay.
4. Repayment of Claims
4.1 Klarna has the right to be repaid by the Merchant for Claims:
(a) deemed to be, at Klarna’s reasonable discretion, illegitimate, fraudulent, in breach of applicable law or the terms and conditions provided by Klarna, or disputed by the Customer;
(b) where the Customer has not received the goods or services, the delivery is unreasonably delayed or has been carried out to an address not approved by Klarna, the Customer has exercised its lawful/contractual right to withdraw the purchase, or where the Merchant has extended to the Customer a right to return the goods or services in excess of what applies under applicable mandatory law, except where the Merchant is protected under the Merchant Protection Program, which offers protection against certain Customer complaints;
(c) in relation to which a Customer acquires cash (e.g. currency exchange), checks or money orders;
(d) where the Merchant has not provided all data points and information deemed as mandatory by the Integration Guidelines;
(e) where there are obstacles restricting the pledge or transfer of the Claim (e.g. if a Claim is already pledged or transferred to a third party); or
(f) if it concerns Claims where the Merchant has breached the Agreement and such breach affects Klarna's ability or right to collect payment from the Customer.
4.2 In the event Klarna has the right to be repaid by the Merchant for a Claim in accordance with Section 4, Klarna reserves the right to be compensated for reasonably incurred costs (including, without limitation, costs incurred as a result of debt collection).
4.3 In the event of a returned Claim, Klarna retains the Service Charges. Further, in the event of a returned Claim under Section 4, if Klarna has already received payment for the Claim from the Customer or a third party, Klarna shall repay those amounts to the Customer.
5. Responsibilities of the Parties in relation to Claims
5.1 The Merchant warrants that Klarna has the sole right to receive payment in respect of a Claim, and warrants that it will not carry out any action which may limit or impair such right in accordance with any applicable laws. Consequently, the Merchant may not without Klarna’s written consent enter into an agreement or arrangement with any third party regarding the purchase, pledging or payment of Claims, nor any other arrangement which restricts Klarna's ability to obtain payment from a customer in respect of a Claim.
5.2 Each Party shall ensure that it at all times maintains the technical requirements needed on its part to enable the use of the Shopping Solutions. The Merchant warrants that it at all times will comply with Klarna’s integration guidelines set out at https://docs.klarna.com (Integration Guidelines).
5.3 If payment for a Claim is made by the Customer or a third party to the Merchant instead of Klarna, the Merchant will without undue delay either (i) register such payment in the Merchant Portal or (ii) otherwise inform Klarna in an appropriate way. The Merchant shall immediately transfer the amount to Klarna and specify what the payment refers to.
5.4 After Capture of a Claim, the Merchant may, with respect to the Claim and the underlying purchase, only agree to such arrangements with the Customer which can be registered in the Merchant Portal or through the integration set-up agreed upon by the Parties. The Merchant shall inform Klarna without undue delay if the Merchant has agreed with the Customer on a return of goods/services or a reduction of the purchase price, or if the Customer has used its return/revocation rights under applicable laws. An authorization shall be canceled without undue delay if the goods or services are unavailable.
5.5 The Merchant shall answer Klarna’s questions and requests for information or documentation regarding Claims without undue delay, and specifically in respect of requests relating to fraud and disputes, within the time frame reasonably determined and prescribed by Klarna as outlined on
, and in any event within the time frame reasonably determined and prescribed by Klarna when making the request. Additionally, the Parties agree to promptly inform each other and promptly handle the matter if a Customer disputes the obligation to settle the Claim. The Parties will handle Customer complaints and disputes promptly and correctly. Klarna reserves the right to charge a dispute fee if the Merchant fails to resolve disputes filed by a Customer within the resolution times specified in the Integration Guidelines (Dispute Fee).5.6 In the event Klarna incurs costs or is charged a fee from the card companies/acquirers in connection with transaction processing, Klarna reserves the right to charge the Merchant the corresponding cost/fee (Chargeback Fee).
5.7 The Merchant shall not (i) impose any fees or penalties on the Customer on the basis that the purchase is made through the Shopping Solutions, or (ii) act in a discriminatory manner towards Klarna by e.g. discounting other payment providers or making it unduly burdensome to access and use the Shopping Solutions on the checkout or payment display page.
5.8 The Parties are solely responsible for their respective performance of its obligations (and those of its employees, agents, sub-merchants and representatives) under this Agreement in relation to the Customers, whether under any contract with the Customers or under any applicable laws. The Parties acknowledge and agree that the Shopping Solutions may not be used for transactions which are deemed illegal under any applicable laws or which violate Klarna’s Prohibited and Restricted Business guidelines (
, as may be updated from time to time, the Ethical Instructions), or, to the extent applicable, any Third Party Payment Option Providers’ instructions. As a regulated bank with affiliates that provide financial services, Klarna Bank and its affiliates are obligated to comply with applicable banking regulations and ethical standards, Klarna reserves the right to consider any non-compliance with the Ethical Instructions as a non-curable material breach and also reserves the right to temporarily suspend the provision of the Shopping Solutions in case of non-compliance with the Ethical Instructions.5.9 Each Party sets their respective customer terms and conditions.
6. Specific conditions concerning purchases and handout of goods in physical stores
6.1 Unless the Parties have agreed to include and integrate In-store under this Agreement, the Merchant is not entitled to use the Shopping Solutions for the sale of goods in physical stores. Unless Section 6.2 applies, the Merchant is not entitled to accept the return of goods in its physical store(s). Subject to Section 4.1 (b), goods purchased via the Shopping Solutions may always be provided to Customers in the Merchant’s physical stores.
6.2 If the Merchant has integrated Klarna In-store or has otherwise been permitted by Klarna to accept returns in physical store(s), the Merchant may accept return of goods in its physical store(s) subject to the following conditions: (i) all returns shall immediately be registered in the Merchant Portal, (ii) all refunds to the Customer are handled by Klarna (i.e. the Merchant may not refund the Customer in connection with a return), and (iii) the Parties shall work in good faith to implement any other reasonable instruction Klarna may provide from time to time specifically relating to return of goods in physical stores. The Merchant shall indemnify and hold Klarna harmless against any costs, losses, claims or other damages that Klarna suffers due to the Merchant not fulfilling its obligations under sub-points (i)-(iii) above.
7. Credit assessment and underwriting
As between Klarna and the Merchant, Klarna will control, in its sole discretion, all decisions concerning Customer transaction approvals and underwriting of Customer’s use of the Shopping Solutions, including decisions on applicable credit limits for Customers.
8. Module support
8.1 Klarna will use reasonable efforts to support all modules and API’s that the Merchant uses to connect to the Shopping Solution. However, as technology progresses, Klarna reserves the right to decide in its sole discretion which modules and API’s to support. If Klarna decides to cancel support of a certain module or API, Klarna will provide the Merchant with reasonable notice thereof. Information on which modules and APIs Klarna supports can be found in the Integration Guidelines
.8.2 The Parties agree that the payment options included in the Shopping Solutions or in an iframe may change from time to time, and that Klarna reserves the right to remove payment options for compliance, risk or other reasonable purposes. The Merchant acknowledges and agrees that Klarna continuously develops and updates the Shopping Solutions in order to improve the shopper experience and thus Klarna reserves the right to make such changes in its hosted environment.
9. Duty to inform
Upon request, or as otherwise required, the Merchant agrees to provide Klarna with information that Klarna requires for the fulfillment of its regulatory duties (e.g. anti-money laundering information) or financial risk assessments. The Merchant acknowledges and agrees that any non-adherence to Klarna’s request for required information may, for compliance purposes, be deemed a material breach. Further, for underwriting and compliance purposes, the Merchant agrees to notify Klarna if (i) there are any material changes with regard to the type of products or services offered by the Merchant, or (ii) if the name under which the Merchant conducts its business changes.
10. Termination
10.1 Each Party has the right to terminate the Agreement with immediate effect if:
(a) the other Party materially breaches any provision of the Agreement and does not, provided that a remedy is available, cure such breach within ten (10) days of the non-breaching Party’s notification;
(b) the other Party has concealed or provided incorrect or misleading information of importance relating to this Agreement; or
(c) the other Party’s financial situation is significantly deteriorated, including but not limited to, becoming or is declared insolvent or bankrupt, or makes an assignment for the benefit of its creditors (Insolvency Event).
10.2 In the event that this Agreement is terminated, Klarna will continue to process and administer any outstanding Claims until the last Claim has been finally settled. Notwithstanding the foregoing, in exceptional cases where Klarna faces considerable risks of violating applicable laws or regulations, or suffering significant reputational harm, Klarna must reserve the right to, after deduction of the Service Charges or any other charges Klarna is entitled to claim under the Agreement, require the Merchant to re-pay the aggregate amount of all outstanding Claims to Klarna and Klarna will transfer the rights it has against Customers in respect of the outstanding Claims paid by the Merchant.
11. Right to retain payments/Set-off
11.1 If this Agreement terminates for any reason, and upon providing notice and the reasons for the retention to the Merchant, Klarna may temporarily retain payments to the Merchant in order to conduct a final accounting and for the purpose of covering Klarna’s estimated financial risk exposure related to anticipated refunds, customer disputes, open debts or fraudulent or illegal activity (its Financial Risk Exposure). Klarna will then undertake a final accounting and pay out the amount owed to the Merchant. The amount Klarna retains will not exceed its Financial Risk Exposure and Klarna shall use commercially reasonable efforts to complete the final accounting and provide payments due to the Merchant as soon as possible.
11.2 Additionally, Klarna may, upon providing notice and the reasons to the Merchant, temporarily increase or decrease the settlement schedule set out in section 2 of the main body of the Agreement, or retain payments corresponding to its Financial Risk Exposure if:
a) the Merchant breaches this Agreement;
b) there is a risk that Klarna, due to the Merchant’s breach of this Agreement or breach of applicable law may incur fines, penalties or other claims from third parties (each a Fine).
c) the Merchant is engaging in or has engaged in fraud; or
d) the Merchant faces an Insolvency Event or its financial standing or ability to fulfill orders or satisfy refunds to Customers materially reduces.
Klarna will release any retained payments under this section once the underlying reason for retaining them has been cured (for example, Merchant provides proof of solvency) or Klarna is no longer experiencing Financial Risk Exposure.
12. Liability
12.1 Each Party’s annual liability to pay any compensation or similar under this Agreement shall be limited to the amount of Service Charges paid or payable by the Merchant to Klarna in the twelve (12) months immediately preceding any claim.
12.2 The limitation of liability set out under Section 12.1 shall not apply to:
(i) any explicit warranties or indemnifications given under this Agreement,
(ii) Klarna’s obligation to pay to the Merchant any amounts due pursuant to Section 2 of the main body of this Agreement
(iii) Klarna’s right to request re-payment of Claims under Sections 4 and 10.2 and
(iv) any liability that cannot be limited or excluded pursuant to applicable law.
12.3 Neither Party is liable whether in contract or tort (including negligence) for breach of statutory duty, or otherwise arising under or in connection with this Agreement for loss of profits, loss of sales, or business, loss of agreements or contracts, loss of anticipated savings, loss of or damages to goodwill, loss of use or corruption of software, data or information or any indirect, special or consequential loss. Further, neither Party shall be liable for unforeseeable damages and particularly not for indirect, punitive or consequential damages.
13. Data protection and PCI compliance
13.1 The Parties agree that each Party is a separate and independent controller in respect of any personal data the respective Party processes as further specified in Appendix 4, and each Party agrees to handle personal data as set out in Appendix 4. When a Customer makes a purchase from the Merchant using the Shopping Solutions, certain data about that Customer is collected (e.g. name and email address). When finalizing the transaction, the Customer will form a separate and independent relationship with the Merchant and Klarna, by being presented and accepting Merchant’s terms and Klarna’s terms. Merchant’s terms will apply to Merchant’s relationship with the Customer. Klarna’s terms will apply to Klarna’s relationship with the Customer.
13.2 In respect of Shopping Solutions for which Klarna has partnered with Third Party Payment Option Providers (as defined in the main body of this Agreement), the Third Party Payment Option Provider terms set out in the Integration Guidelines will apply.
13.3 Klarna shall at all times be Payment Card Industry Data Security Standard (PCI DSS) validated. To the extent applicable (e.g. if the Merchant collects, processes or stores card data), the Merchant shall at all times be compliant with the PCI DSS rules applicable to Merchant from time to time. As long as the Merchant uses the Shopping Solutions in accordance with the Integration Guidelines, Klarna will be responsible for the security of cardholder data that Klarna possesses or otherwise stores, processes, or transmits when providing the Shopping Solutions.
14. NOT USED
15. Force majeure
Should the Parties be prevented from fulfilling their obligations under this Agreement due to circumstances which the Parties have no control over - e.g. lightning, fire, sabotage, earthquake, tornado, flood, explosion, embargo, war, terrorism, riot, act of God, act of public enemy, changed legal provisions or regulations provided by authorities, intervention by authorities, strike, communication or transport disruptions, changes in exchange rates or natural disasters - the Parties shall be released from their liabilities until the circumstances giving rise to the Parties’ inability to fulfill their respective obligations no longer exist. This Section 15 shall be viewed in light of Klarna having a redundant system with geographically dispersed server sites meaning that Klarna may not claim force majeure where only one server site is down due to a force majeure event. If a Party is prevented from fulfilling its obligations for a longer period than thirty (30) days due to any of the foregoing circumstances, each Party shall have the right, without being liable to pay any compensation, to terminate the Agreement with immediate effect.
16. Amendments to the Agreement
Amendments to this Agreement require written form (email shall suffice). The Parties acknowledge and agree that, due to the regulated nature of the Shopping Solutions, Klarna may unilaterally change terms of this Agreement, provided that Klarna shall make reasonable effort to notify the Merchant of such changes. Should such changes not be acceptable to the Merchant, the Merchant may terminate the Agreement by giving written notice to Klarna no later than sixty (60) days after receipt of Klarna’s notification of amendment.
17. Transfers
Neither Party may transfer its rights or obligations under the Agreement without the other Party’s prior written consent. Notwithstanding the foregoing, Klarna may assign or transfer the Agreement to any Klarna Affiliate. Further, Klarna has the right to transfer, pledge or in any other way dispose over the Claims. Klarna is entitled to engage subcontractors in order to provide the Shopping Solutions, provided that Klarna takes full responsibility for such subcontractors.
18. Confidentiality
18.1 The Parties undertake, during the term of this Agreement and for a period of two (2) years thereafter, not to disclose Confidential Information to any third party without the other Party’s written consent. Any Confidential Information obtained shall only be used for the fulfillment of the Agreement. Confidential Information means any information, in whatever form, disclosed or provided by one Party to the other party (Receiving Party) in the context of this Agreement. Non-confidential information means any information which:
(a) is or becomes generally available to the public other than as the result of a disclosure by the Receiving Party;
(b) the Receiving Party can show that it already had in its possession before it was received;
(c) the Receiving Party is obliged to provide in accordance with any applicable laws, investment exchange rules, court order or decision by a governmental authority; or
(d) the Receiving Party has received from a third party without being bound by confidentiality in relation to it.
18.2 For the avoidance of doubt, Confidential Information also refers to third party information of technical, commercial or other nature unless there are objective and reasonable grounds to assume that such information is non-confidential. This provision applies to any information relating to third parties, including Customer information, that the Merchant obtains when using the Merchant Portal or when communicating with Klarna, and where it is clear that the dissemination of the above-mentioned information is not desired by third parties. To the extent permissible by applicable laws, Klarna is entitled to share Confidential Information with subcontractors, external advisors, service providers, and other companies within the Klarna group provided that such parties are subject to confidentiality obligations corresponding to those under this Agreement.
19. IP rights and know-how
Klarna retains all ownership and intellectual property rights to anything developed by Klarna and provided to or accessed by the Merchant under this Agreement. The Merchant warrants that it will not directly or indirectly reverse engineer, decompile, disassemble or otherwise attempt to derive source code or other trade secrets from the Shopping Solutions. The Merchant’s use of Third Party Payment Option Providers’ trademarks, whether registered or not, does not entail any transfer of ownership, rights or copyrights. After termination of the Agreement or the removal of the Shopping Solutions (in whole or in part), the Merchant undertakes to immediately remove all respective logotypes and similar of Klarna and/or of any Third Party Payment Option Provider specifically relating to such removed Shopping Solutions. This does not apply if the Third Party Payment Option Provider entitles the Merchant to continue the use of its logotypes. Klarna is entitled to refer to the Merchant as a user of the Shopping Solutions in sales or similar material provided that such material is not directed at the general public.
20. Waiver
No failure or delay by a party to exercise any right or remedy provided under this Agreement or by law shall constitute a waiver of that or any other right or remedy, nor shall it prevent or restrict the further exercise of that or any other right or remedy. No single or partial exercise of such right or remedy shall prevent or restrict the further exercise of that or any other right or remedy. The rights and remedies provided under this agreement are in addition to, and not exclusive of, any rights or remedies provided by law.
21. Severability
Should a provision of this Agreement become invalid or unenforceable, this will not affect the other provisions and the validity of this Agreement. Upon determination that any provision is invalid or unenforceable, the Parties shall negotiate in good faith to modify the Agreement to come as close as possible to the original commercial intent of the parties with respect to such provision.
22. Independent contractors
The Merchant and Klarna are independent contractors and shall have no power or authority to assume or create any obligation or responsibility on behalf of each other. The Agreement shall not be construed to create or imply any partnership, agency or joint venture.
23. No third party beneficiary
This Agreement is intended for the sole and exclusive benefit of the signatories and is not intended to benefit nor shall any of its provisions be enforceable by any person other than the parties to this Agreement and their respective successors and permitted assignees.
24. No warranty
Access to Klarna’s systems or databases and participation in and use of the Shopping Solutions are provided under this Agreement on an “as is” basis, without warranty of any kind, except as expressly stated herein or implied by law. Klarna disclaims all representations, warranties, and conditions, express, implied, or statutorily, to the fullest extent permitted by law.
25. Entire agreement
This Agreement constitutes the entire agreement between the Parties in relation to the Shopping Solutions and supersedes and extinguishes all prior oral or written promises, assurances, warranties, representations, understandings or agreements between the Parties on the subject matter or parts hereof. Each party agrees that it shall have no remedies in respect of any statement, representation, assurance or warranty (whether made innocently or negligently) that is not set out in this Agreement. Each party agrees that it shall have no claim for innocent or negligent misrepresentation or negligent misstatement based on any statement in this Agreement.
26. Survival
Termination or expiration of this Agreement will not affect either Party’s obligations in regard to fees payable hereunder, indemnities or any other term which by its nature and context is intended to survive termination or expiration of this Agreement.
Termination or expiry of this Agreement shall not affect any rights, remedies, obligations or liabilities of the parties that have accrued up to the date of termination or expiry, including the right to claim damages in respect of any breach of this Agreement which existed at or before the date of termination or expiry.
27. Definitions
27.1 “Australian and New Zealand Data Privacy Legislation” means all laws relating to the processing of Personal Information applicable to the respective Party at each point in time, including but not limited to the Australian Privacy Act 1988 (Cth) and the Spam Act 2003 (Cth), and in relation to a Merchant entity providing and selling products/services in New Zealand, the Privacy Act 1993 and the Unsolicited Electronic Messages Act 2007, any codes or guidelines approved under those acts, and all other laws that apply to the privacy, protection and Processing of any Personal Information from time to time.
27.2 “Personal Information” has the meaning given in applicable Australian and New Zealand Data Privacy Legislation from time to time, and includes any information or opinion in any form, whether recorded or not, about an identified individual or an individual who is reasonably identifiable and which the Parties collects or access in regards to this Agreement.
27.3 “Process” means any act or practice in connection with, or processing applied to, any Personal Information, and includes the collection, use, handling, disclosure or storage of, or granting of access rights to, Personal Information; and Processing has a corresponding meaning.
27.4 “Shared Customer Personal Information” means any Personal Information (i) which relates to Customers; and (ii) which is exchanged between the Parties for the purpose of allowing Klarna to perform, and the Merchant to use, the Shopping Solutions, with the ultimate aim of allowing each of Klarna and the Merchant to provide its respective services to the Customers.
27.5 “Shared Contact Personal Information” means any Personal Information (i) which relates to business representatives of a Party; and (ii) which is exchanged between the Parties for the purpose of allowing Klarna to perform, and the Merchant to use, the Shopping Solutions and to otherwise administer the business relationship between the Parties.
27.6 “Shared Personal Information” means Shared Customer Personal Information and Shared Contact Personal Information.
28. Mutual obligations
28.1 As a result of the Agreement, a party may obtain certain Personal Information. As such, the Parties agree and acknowledge that they are separately and independently responsible for complying with Australian and New Zealand Data Privacy Legislation with regard to the Personal Information in its possession.
28.2 Each party should ensure that any Shared Personal Information is shared in accordance with Australian and New Zealand Data Privacy Legislation, including introducing any information about this into their respective privacy policies and/or by other means, as appropriate. This in order to clearly explain the information sharing to the Customers and the Merchant’s business representatives at the same time setting out how their Personal Information may be used by the receiving Party. The Merchant warrants that it will not share any personal data with Klarna that classifies as special categories of personal data, such as information regarding ethnic origin, data concerning health or trade union membership, sexual preference or as otherwise defined as ‘sensitive information’ in the Privacy Act 1988 or equivalent applicable privacy legislation.
29. Klarna’s handling of Merchant’s Shared Contact Personal Information
29.1 Klarna will Process Merchant’s Shared Contact Personal Information to provide the Merchant with the Shopping Solutions and to administer the business relationship with the Merchant. Klarna may also use this Personal Information in order to send newsletters, to conduct product surveys, to advertise similar products or services of Klarna and for event invitations. Merchant’s Shared Contact Personal Information may also be used for business analysis and reporting purposes, during fraud investigations and to comply with applicable laws and regulations. Where lawful, Klarna may disclose the information to other companies within the Klarna group and to third party service providers or partners which may also use the information for the purposes described in this clause. The Merchant’s business representatives are entitled to their rights in respect of their Personal Information as described in applicable law, which may be exercised by contacting
.29.2 Certain services provided by Klarna are subject to separate Klarna privacy policies, prompted before the first use of such service.
30. Design and Distribution Obligations in Australia
30.1 In marketing the Shopping Solutions as contemplated by this Agreement, the Merchant may be required to comply with the Design and Distribution Obligations under Part 7.8A of the Corporations Act 2001 (Cth) (Corporations Act) imposed on a Distributor in Australia (DDO).
30.2 For the purposes of this Agreement, ‘Distributor’ means a ‘regulated person’ as defined in section 994A(1) of the Corporations Act that engages in ‘retail product distribution conduct’ as defined in section 994A(1) of the Corporations Act.
30.3 Klarna has established a Target Market Determination in respect of the Shopping Solutions which is available at
(TMD).30.4 Klarna will take all reasonable steps to ensure its credit assessment and approval process results in the Shopping Solutions being distributed in accordance with the TMD.
30.5 Ordinarily, Klarna does not require the Merchant to take any additional steps to assist Klarna with this process. However, the Merchant agrees to undertake any additional steps Klarna may reasonably request from time to time to ensure the Shopping Solutions are being distributed in a manner that is consistent with the TMD.
30.6 The Merchant may also take any additional steps it considers necessary to meet any obligation imposed upon it as a Distributor and Klarna will provide all reasonable assistance requested by the Merchant to enable it to meet its Distributor obligations.
30.7 The Merchant must advise Klarna within ten (10) business days of becoming aware of a significant adverse dealing in respect of a Customer using the Shopping Solutions that is not consistent with the TMD. This will include advising Klarna of:
any material complaints made to the Merchant in respect of the Shopping Solutions not being suitable for meeting the Customer’s needs or otherwise causing the customer harm; and
instances of Customers under the age of 18 using the Shopping Solutions to purchase goods or services from the Merchant.
30.8 Klarna will retain copies of all records and documents provided to Klarna by the Merchant relating to any significant adverse dealing reported by the Merchant. Klarna will promptly make these records available to the Merchant when reasonably requested by the Merchant, including in circumstances arising from a request made by the Australian Securities and Investments Commission to the Merchant. The Merchant agrees to provide all relevant documents and information in respect of a significant adverse dealing reported to Klarna that are within its possession or control and to provide all reasonably requested assistance to Klarna to enable Klarna to investigate and resolve a reported significant adverse dealing and to retain all associated records.
30.9 This section survives termination or expiration of this Agreement.