Snoop Dogg-Backed ‘Pay Later’ Lender Prompts U.K. Ad Probe (1)

U.K regulators are examining advertisements by Klarna, the Swedish lender backed by BlackRock Inc. and the entertainer Snoop Dogg, as part of a broad inquiry into whether the marketing of “buy now, pay later” services is encouraging reckless spending by young people.

The U.K.’s Advertising Standards Authority started the probe this month after complaints from consumers, said Freddie Alcock, a spokesman for the agency.

“We are alive to concerns around deferred-payment providers’ advertising,” Alcock said. “This includes concerns about whether Klarna’s ads are irresponsibly reducing the immediate perceptions of costs of purchases, particularly as many of their ...