- Worldcoin is a universal basic income and biometric identification project
- It was fined $200,000 for Buenos Aires National Consumer Protection Law violations
- The project included abusive clauses in its user agreement terms and conditions
Worldcoin is a universal basic income and iris-based biometric identification project fined over $200,000 in Buenos Aires for multiple National Consumer Defense Law violations.
What Exactly Is Worldcoin’s Offense?
These fines resulted from an investigation initiated by the consumer protection authorities in April 2024.
The Buenos Aires authorities concluded that the project had included improper clauses in the terms and conditions of the service agreement and failed to exercise due diligence in verifying identity.
This created serious repercussions because not only was the data collection not done properly, but it also allowed minors to register their biometric data.
Worldcoin has also been criticized for its lack of transparency in its processes for collecting and storing user data.
What Points Are Particularly Critical Here?
Of course, biometric data is particularly sensitive, unlike a password that can be changed anytime. Therefore, regulations regarding this type of data are exceptionally strict.
Also, any combination of breaking the law and involving minors makes the offense much more serious.
Conclusions
The fine may not be the largest we’ve seen, but the reputational and legal implications for Worldcoin remain very high.
So far, no official announcements have been made regarding specific strategies to rehabilitate Worldcoin beyond paying the fine.
We’ll closely monitor their official plan regarding improved security processes and compliance with regulatory frameworks.
