The provincial government of Buenos Aires has made formal accusations against Worldcoin, claiming that the company has violated consumer laws through the inclusion of “abusive clauses” in its user agreement. These clauses supposedly allow Worldcoin to interrupt services without offering any form of repair or reimbursement to its users. Furthermore, the government asserts that Worldcoin’s agreement forces users to give up their rights to collective complaints and subject them to the application of Cayman Island laws, as well as requiring any disputes to be resolved through arbitration in California. These alleged practices go against Argentina’s own Civil and Commercial Code, according to the provincial government.
One of the main concerns raised by the government is Worldcoin’s handling of private data of Argentine users. The company reportedly stores this data internationally in Brazil, raising questions about the protection and storage of biometric data collected from the faces and eyes of users. There is also the issue of data deletion, with doubts being cast on Worldcoin’s ability to eliminate biometric data in accordance with legal requirements. If these charges are substantiated, Worldcoin could face a hefty fine of up to 1 billion Argentine pesos ($1.2 million), demonstrating the seriousness of the allegations.
The accusations against Worldcoin by Buenos Aires are not isolated incidents, as similar actions have been taken in the EU by countries like Spain and Portugal. These allegations center around data collection from minors, user consent, and data ownership, highlighting a broader trend of regulatory scrutiny faced by the company. Spain and Portugal have even gone as far as imposing temporary bans on data collection by Worldcoin, showcasing the severity of the violations being alleged.
In response to the allegations, Worldcoin has maintained that its operations are fully legal and has announced transparency improvements to address some of the concerns raised by regulatory authorities. Notably, Ethereum creator Vitalik Buterin has praised these efforts, indicating a level of recognition for the steps taken by Worldcoin. The company, founded by Sam Altman, CEO of OpenAI, and backed by Tools for Humanity, a development firm supporting Worldcoin, is now tasked with adapting its terms to comply with the regulations of the regions in which it operates.
The accusations leveled against Worldcoin by the provincial government of Buenos Aires shed light on the importance of regulatory compliance and data protection in the digital age. The company’s response and the international ramifications of the allegations signal a broader discussion on the responsibilities of tech companies in safeguarding user data and adhering to consumer protection laws. Worldcoin’s ability to address these concerns and rectify any violations will ultimately determine its future standing in the volatile landscape of digital currency and data privacy.
