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Worldcoin, the biometric iris scanning digital ID organization, is being accused by the government of Buenos Aires of several transgressions, including contradictions regarding the treatment of users’ digital information. Buenos Aires considers that the company exposes users to several unfair clauses, including those describing the possible interruption of the service.
Worldcoin Faces Over $1 Million in Fines in Buenos Aires
Worldcoin, the biometric identification project, is facing legal action due to its operations in the province of Buenos Aires. The company was accused of including unfair clauses in its binding contracts, violating the rights guaranteed by the National Consumer Defense Law. The consumer defense organization of Buenos Aires also found contradictions in the treatment of the biometric data collected from citizens of the province.
The government of Buenos Aires found that several contracts that users accept when using Worldcoin’s services, including “Terms and Conditions of Use”, “Privacy Notice” and “Data Consent Form,” vulnerate the rights of Argentine consumers. Among these clauses considered unfair, one gives the company the ability to suspend the service with no refunds to its users.
These contracts force users to renounce collective claims and establish the Cayman Islands regulation as applicable to Argentines. In addition, eventual disputes would be settled through arbitration in California’s jurisdiction, infringing on Argentine law.
Ariel Aguilar, Undersecretary of Commercial Development and Investment Promotion of the province, declared that Worldcoin’s operations were difficult to understand.
He explained:
The complexity of these contracts, the novelty of the operation deployed, the goods at stake, and the lack of information prevent a clear and full understanding of the rules and operation of this entire operation.
According to info published by the province, the iris data of users collected by Worldcoin would be stored in Brazil.
Also, Buenos Aires authorities reported the company had not made any public announcement prohibiting minors from registering into Worldcoin’s system. This worries authorities on the possible involvement of minors in Worldcoin’s operations, an issue was also raised by the Spanish data agency when it ordered a temporary stop on Worldcoin operations in the country.
Worlcoin faces fines of over $1 million for these alleged infringements.
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