- Concerns raised about Worldcoin’s data practices, including inadequate age restrictions and international storage of Argentine biometric data.
- Potential fine up to 1 billion Argentine pesos if Worldcoin found guilty, amid broader international privacy concerns.
The provincial government of Buenos Aires has officially charged Worldcoin with violating consumer protection laws. The charge centers on the inclusion of what are described as “abusive clauses” in Worldcoin’s user agreements.
These clauses reportedly allow the company to discontinue services without compensating users or offering repairs.
Ariel Aguilar, who serves as the Undersecretary for Commercial Development, raised doubts about Worldcoin’s capability to adequately delete collected biometric information.
If found liable for the violations, Worldcoin could be subject to a fine reaching 1 billion Argentine pesos, equivalent to roughly $1.2 million.
Read more: Argentina’s Economic Reform Sidesteps Crypto Regularization Under President Milei’s New Agenda
Further, the agreement requires that any disputes be resolved under the laws of the Cayman Islands and through arbitration in California, which contradicts Argentina’s Civil and Commercial Code.
Additionally, the agreement stipulates that users cannot participate in collective legal actions, a condition that the government claims infringes on the rights of Argentine citizens.
The government also raised issues related to the management of users’ data. It found that Worldcoin does not adequately inform users that individuals under the age of 18 are prohibited from using the service.
Related: Worldcoin’s Argentina Triumph: 500,000 World IDs Verified in Record Surge
Moreover, the company has been storing personal data of Argentine users in Brazil, which has brought up concerns regarding the “use, protection, and storage” of biometric data, which includes facial and eye recognition information.
These actions in Buenos Aires align with similar privacy concerns and legal actions taken against Worldcoin in the European Union, specifically in Spain and Portugal, where temporary bans on data collection were imposed.
Despite these challenges, Worldcoin has stated that its operations are legal and has recently made efforts to enhance transparency, receiving positive remarks from notable figures in the technology sector.
Worldcoin (WLD) is currently trading at $5.0553, experiencing a gain of 7.46%.
