Buenos Aires Province has fined Worldcoin 194 million pesos for irregular handling of biometric data. Imposed by the Ministry of Production, Science, and Technological Innovation, the fine addresses the digital identity platform’s alleged lack of protection for sensitive biometric data obtained through iris scanning.
The authorities have also ordered the elimination of allegedly predatory clauses in Worldcoin’s contracts to protect consumer rights. The action follows an investigation that revealed irregularities in Worldcoin’s operations, including unclear age limits and problematic contract terms.
The investigation is part of a broader scrutiny faced by Worldcoin worldwide. Last year, the French data protection authority CNIL launched an investigation into Worldcoin’s biometric data collection practices, raising concerns about the legality and consent involved in their iris scanning process. More recently, Hong Kong’s privacy watchdog ordered Worldcoin to cease operations in the region after finding their data collection practices excessive and non-compliant with local privacy laws.
In Buenos Aires, Worldcoin has been criticized for its contracts, which included clauses that violated local regulations by allowing suspension of services without reimbursements and waiving class action lawsuits. Provincial authorities in Buenos Aires found these clauses problematic, especially given the sensitive nature of biometric data collected.
Worldcoin recently announced plans to make Argentina a strategic hub for its operations in Latin America, investing significantly to expand its presence.
Worldcoin has expressed its surprise over this latest fine and plans to appeal the decision, claiming a fundamental misunderstanding of the facts and legal framework. The company maintains its commitment to transparent and fair practices and upholding high standards of data privacy in compliance with applicable laws.
Source: Buenos Aires Times
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July 29, 2024 – by Cass Kennedy
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