Recently, the provincial government of Buenos Aires has taken a stand against Worldcoin, accusing the company of violating consumer laws. The government has pointed out several issues within Worldcoin’s user agreement that are deemed as abusive towards consumers. One of the main concerns raised is the alleged ability of Worldcoin to interrupt services without any obligation to provide repair or reimbursement to users. This kind of behavior goes against consumer protection laws and shows a lack of responsibility towards the users of the platform.
The provincial government also highlights the fact that Worldcoin’s user agreement requires users to surrender their rights to collective complaints. Instead, the company imposes Cayman Island laws on residents of Argentina, which raises serious questions about the legality and fairness of such agreements. Moreover, disputes are mandated to be resolved through arbitration in California, which contradicts Argentina’s Civil and Commercial Code. This kind of application of external regulations may put Argentine users at a disadvantage and limit their ability to seek proper justice in case of issues with the platform.
Furthermore, the government raised concerns about Worldcoin’s handling of user data, particularly in relation to minors. The company allegedly does not have an age disclaimer to prevent users under 18 from accessing the service, which poses risks to underage individuals. Additionally, Worldcoin stores private data of Argentine users internationally in Brazil, which may violate data protection laws and raise questions about data security. The government pointed out contradictions in the information provided by Worldcoin regarding the use, protection, and storage of biometric data collected from the faces and eyes of Argentine users. The deletion of such sensitive data also raises doubts about Worldcoin’s commitment to user privacy and data security.
If the allegations against Worldcoin are proven, the company may face fines of up to 1 billion Argentine pesos. Buenos Aires authorities have emphasized the importance of complying with the region’s consumer protection regulations and have urged Worldcoin to adapt its terms to meet legal standards. The government’s actions against Worldcoin are not isolated, as similar charges have been filed in the EU by Spain and Portugal. These allegations focus on data collection from minors, user consent, and data ownership, indicating a pattern of concerns regarding Worldcoin’s practices.
The accusations made by the provincial government of Buenos Aires against Worldcoin highlight the need for companies to adhere to consumer protection laws and respect user rights. The case serves as a reminder of the importance of transparency, data security, and legal compliance in the digital age, especially for companies that handle sensitive user information. Worldcoin’s response to these allegations will be crucial in determining its reputation and future operations in Argentina and beyond.