The provincial government of Buenos Aires has taken legal action against Worldcoin for allegedly violating consumer laws with its user agreement. The government claims that the agreement contains abusive clauses that allow Worldcoin to interrupt services without providing repair or reimbursement to users. Additionally, users are required to surrender their rights to collective complaints, with disputes being resolved through arbitration in California, which goes against Argentina’s Civil and Commercial Code.
One of the key issues raised by the government is the lack of an age disclaimer in Worldcoin’s service, failing to notify users that individuals under the age of 18 cannot access the platform. Furthermore, Worldcoin stores private data about Argentine users internationally in Brazil, raising concerns about the use, protection, and storage of biometric data collected from users’ faces and eyes. The government questions Worldcoin’s ability to delete this sensitive data if necessary.
If found guilty, Worldcoin could face a hefty fine of up to 1 billion Argentine pesos ($1.2 million). Despite the potential financial penalty, Worldcoin is currently only exposed to the fine, awaiting further legal proceedings to determine the outcome of the accusations. The government’s actions against Worldcoin mirror similar charges filed in the EU by Spain and Portugal, focusing on data collection from minors, user consent, and data ownership. Spain and Portugal have gone as far as imposing bans on data collection for a three-month period as a consequence of their investigations.
In response to the allegations and legal actions, Worldcoin has defended its operations as fully legal, with CEO Sam Altman asserting compliance with regulations. The company also announced transparency enhancements in March, which garnered praise from Ethereum creator Vitalik Buterin. Despite the controversy surrounding Worldcoin, the company’s founder has a notable background, being the CEO of OpenAI and chairperson of Tools for Humanity, a firm that supports Worldcoin in its endeavors.
The accusations brought forth by the government of Buenos Aires shed light on the potential violations of consumer laws by Worldcoin. The issues surrounding the user agreement and privacy concerns raise important questions about data protection and user rights. As the legal proceedings continue, it remains to be seen how Worldcoin will address these allegations and adapt its terms to comply with regional regulations.
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