Skip to main content

Advertising watchdog bans “irresponsible” Klarna adverts

The Advertising Standards Authority has upheld claims made against a series of Instagram posts promoting Klarna Bank’s deferred payment services.

The ASA on Wednesday ruled that Klarna could not show a series of adverts made with Instagram influencers that links using Klarna’s credit service with improving someone’s mood.

While the first stages of the coronavirus pandemic hit the UK in April and May this year, Klarna engaged a number of Instagram influencers with paid advertising to discuss using its services to improve their mood during lockdown.

READ MORE: Klarna encourages customers to “shop smart” amid criticism shoppers use it to buy things they can’t afford

The ASA received a complaint from the Labour MP Stella Creasy that the promotional Instagram posts were irresponsible for encouraging the use of Klarna’s deferred payment service to help people lift their low mood whilst the nation was under lockdown.

Klarna said it believed the four adverts complied with the CAP Code and were not irresponsible, and said the key theme was to take care of one’s self during the coronavirus lockdown period.

They 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.

Where references to lifting one’s mood were made, Klarna said these were in reference to using a beauty product or taking care of one’s self.

The Swedish bank argued that the posts did not infer that using Klarna lightened one’s mood. Klarna confirmed that the four Instagram posts were the result of a paid engagement with each influencer.

Klarna went on to add that during the lockdown period they were sensitive to the tone of the influencers’ posts, removed all commercial calls to action and asked them to focus on contributing in positive ways to their community.

The buy now, pay later-specialist also highlighted that the call to action in the three posts was not to use Klarna’s services, but to highlight a competition which gave consumers the opportunity to win £500 worth of beauty products.

The ASA upheld the complaints made against Klarna, stating that in the context of the national restrictions, all four of the adverts “made references to purchasing beauty or clothing items to help with ‘lifting’ or ‘boosting’ one’s mood during the pandemic and lockdown, in association with Klarna.”

“We acknowledged that purchasing non-essential items was likely to be a source of comfort for some people during the national lockdown,” the ASA said.

“However, each ad promoted the use of Klarna’s deferred payment services, and we considered that the respective influencers had linked buying beauty or clothing products through this service with enhancing their mood during an uncertain and challenging period, when many people were experiencing difficult circumstances and isolation during the lockdown, including financial concerns and mental health problems,” the ASA added.

The 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, breaching its Committee of Advertising Practice Code for social responsibility.

Click here to sign up to Charged free daily email newsletter

The post Advertising watchdog bans “irresponsible” Klarna adverts appeared first on Retail Gazette.



from Retail Gazette https://ift.tt/2KR9i2i
via IFTTT

Comments

Popular posts from this blog

Eagle Labs launches impirica CBD brand

ST. PETERSBURG, Fla. — Eagle Labs has launched impirica, a new brand of CBD intended to eliminate consumer fear, and increase confidence, in trying the exciting new cannabidiol category. Michael Law Although most Americans have now heard about CBD, many are very confused and concerned about product quality. This is inhibiting trial in the category and holding back conversion into sales. In fact, a 2017 study by Johns Hopkins University found that two out of three CBD products on the shelf did not contain the amount of CBD reflected on the label. Furthermore, in 2018 and 2019, the FDA sent notices to a substantial number of CBD manufacturers advising them of serious concerns about product quality or egregious medical claims. The impirica brand looks different than most CBD brands — the brand name itself connotes testing and trust, says Eagle Labs chief commercial officer Michael Law. “It doesn’t use the traditional category colors of browns and greens, and you won’t find a hemp...

Sagar Daryani, CEO and Co-founder – Wow! Momo & Saga: From a Kiosk to a Kingdom

Sagar Daryani’s entrepreneurial odyssey from humble beginnings to pioneering success has redefined the landscape of food startups in India. Co-founding Wow! Momo, he has spearheaded the growth of the largest indigenous QSR chain in the country, crafting a remarkable saga of triumph The Genesis: A Visionary Venture Takes Root In 2008, armed with a mere Rs. 30,000 and boundless ambition, Sagar Daryani and Binod Homagai embarked on their entrepreneurial journey while still pursuing their graduation in B.Com Hons from St. Xavier’s College, Kolkata, even before their college results were out. They knew the value for money and boot-strapped to plough back profits and grow their venture. Sagar spearheaded brand expansion, brand creation, and marketing and retail operations. Grew across the city with a strong consumer focus. The early days were hard but keeping track of the money flow was even harder. Believing in the concept of ‘1 rupee saved is 5 rupees earned’, and the lessons they lear...

Homegrown ice cream chain HOCCO to open 250 stores, eyes Rs 400 crore by FY26

Ankit Chona, Founder and Managing Director of HOCCO, delves into the company’s revenue model, growth strategies, and vision for the future… Bengaluru: HOCCO (House of Chonas Collaborative) , the Ahmedabad-based ice cream and quick-service restaurant (QSR) chain, boasts a rich legacy spanning over 70 years, with roots tracing back to pre-independence India. The Chona family has been deeply entrenched in the food industry since 1944, originally operating in undivided Pakistan. Following the Partition, Satish Chona , an engineer with British Overseas Airways Corporation, relocated from Karachi to India. After journeying through multiple cities, he ultimately settled in Ahmedabad, where he established his first QSR outlet in 1953. Three decades later, he expanded into the casual dining segment, launching a restaurant in Baroda while continuing the family’s ice cream manufacturing business. However, in 2017, the company sold its ice cream division to a South Korean firm, shifting its fo...