Argentina Joins Legal Battle Against Worldcoin Over Alleged Abusive Clauses and Biometric Data Misuse


During recent months, Sam Altman’s tech-based creation, Worldcoin, also known as WLD, has been subjected to a mounting tide of legal complications, most notably from Spain and Portugal. These European nations heavily criticized Worldcoin’s practices of accumulating biometric data. Now, the South American nation of Argentina has joined the legal fray, holding Worldcoin accountable with an official indictment after detecting allegedly oppressive clauses embedded within user contracts.

In Buenos Aires, officials have unearthed inconsistencies between Worldcoin’s publicly outlined data handling protocols and the discoveries made during regional inspections. Concerns have been raised about the storage, deletion and possible overreach into user’s rights involving biometric data. The indictment was instituted after the provincial arm of consumer protection initiated an in-depth investigation, led by The Ministry of Production, Science, and Technological Innovation of Buenos Aires.

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The investigation shed light on what are being referred to as “abusive clauses” within Worldcoin’s contracts. These allegedly infringe on Argentina’s National Consumer Protection Law, thus transgressing upon user rights. Ariel Aguilar, the Undersecretary responsible for Commercial Development and Promotion of Investments for the province, voiced concerns over a noticeable lack of transparency surrounding the data processing procedures of Worldcoin.

Aguilar strongly questioned the retention and deletion practices for biometric data, the potential existence of databases storing Argentine user’s personal data, and the intricate nature of the contracts and operational procedures of Worldcoin. The provincial inspections reportedly discovered several contract violations including issues with the “Terms and Conditions of Use,” “Privacy Notice,” and “Data Consent Form.” Of note, the company did not post clear indications of the minimum age requirement for accessing the service, potentially leading to the scanning of minors’ personal data.

In addition, discrepancies were found regarding the protection, storage, and use of biometric data, specifically data obtained from facial and iris scans of Argentine users. There are indications that this private data is being stored offshore, in Brazil. Concern was also raised about clauses that allow Worldcoin to discontinue the service without offering any compensation or refund. The contracts reportedly compel users to forgo pursuing collective redress claims and to subject themselves to foreign jurisdiction – specifically, laws of the Cayman Islands. In the event of disputes, these would be settled through arbitration in California, USA – a direct violation of Argentina’s Civil and Commercial Code. Due to these alleged violations, Worldcoin could be on the hook for fines that could peak at 1 billion pesos, or approximately $1.2 million.

In spite of the mounting legal challenges and increasing scrutiny, the Worldcoin token, WLD, has inexplicably experienced a slight upswing of 2.6% in the last 24 hours, trading at $4.80. However, crucial financial metrics indicate that broader market corrections have negatively impacted WLD. Trading volume in the last day amounted to $319,113,250, indicating a decrease of 7.10% from the previous day. Furthermore, WLD witnessed a significant fall of 58% since hitting its all-time high of $11.74 on March 10. Confirming this trend, the token’s market capitalization has seen a substantial decline, falling below the billion-dollar mark to a current estimated value of $920 million.

Notably, Worldcoin had been previously active in numerous cities across Buenos Aires. The company collected personal biometric data – predominantly iris and facial scans – through its ‘Orb’ technology. In return, users gained access to the World App financial application on their phones and received cryptocurrency from Worldcoin’s native token, WLD.