Bittime - Bad news for Worldcoin, a company providing digital identity based on iris scanning. The government of Buenos Aires, Argentina, accused Worldcoin of a number of legal violations. As a result, Worldcoin faces a fine of more than $1 million (around Rp. 16 billion).
Violation of the Consumer Protection Act
Worldcoin allegedly included unfair clauses in user contracts that violated Argentina's National Consumer Protection Law. This clause is considered detrimental to users, such as:
- Termination of service without refund: Worldcoin has the power to suspend service without the need to refund users.
- Prohibition of collective claims: The Worldcoin Contract prohibits users from filing collective claims if problems arise.
- Dispute resolution outside Argentine Jurisdiction: Any disputes arising will be resolved through arbitration in California, United States, which is contrary to Argentine law.
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Concerns about User Data
In addition to contract violations, the Buenos Aires government also found inconsistencies in the handling of user biometric data, especially iris data. Alleged violations include:
- Lack of transparency in use of iris data: There is no detailed explanation of how user iris data will be used and stored.
- Potential involvement of minors: Buenos Aires authorities are concerned that Worldcoin does not have adequate mechanisms to prevent the registration of minors on their platform. This issue was previously raised by the Spanish data monitoring body which resulted in the temporary suspension of Worldcoin operations in that country.
Potential Fines and Sanctions
For this alleged violation, Worldcoin faces a fine of more than $1 million. In addition, the Buenos Aires government has the potential to take other sanctions measures to protect consumers and the personal data of its citizens.
Also Read: The Conspiracy Behind Worldcoin: Myths and Facts
Worldcoin's response
There has been no official response issued by Worldcoin regarding the allegations made by the Buenos Aires government. Clarification steps are needed from Worldcoin to address various irregularities in user contracts and handling of biometric data.
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The Future of Worldcoin in Argentina
This case highlights the security and transparency of user data in biometric-based digital identity platforms. Worldcoin needs to immediately take corrective steps to comply with applicable regulations in Argentina and restore user trust. If not, it is not impossible that Worldcoin will face operational restrictions or even a total ban in Argentina.
With this case, it is hoped that users of digital platforms that involve biometric data will be more careful and carefully understand the terms of use of these services.
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DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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