Buenos Aires provincial government accuses Worldcoin of violating consumer laws, warns it faces $1.2 million fine

The province's action follows other accusations from Spain and Portugal.

The government of Buenos Aires province (Argentina’s largest city) officially accused Worldcoin of violating consumer laws through “abusive clauses” in its user agreement.

According to the notice, Worldcoin’s alleged unfair agreement allowed it to interrupt service without providing repairs or compensation.

The provincial government also claims that Worldcoin requires users to waive their right to file a collective complaint and apply Cayman Islands law to Argentinian residents.

Additionally, any disputes must be resolved by arbitration in California. It is alleged that Worldcoin’s application of external regulations violated Argentina’s Civil and Commercial Code.

Minor Access and Data Deletion Issues

The provincial government described the findings of an audit it conducted on Worldcoin and made two complaints. First, the company has no age statement and does not inform users that people under 18 cannot use the service. Second, Worldcoin stores private data about Argentine users in Brazil internationally.

It linked the issue to conflicting information about the "use, protection and storage" of facial and eye biometric data collected from users in Argentina.

Finally, data deletion is an issue. Ariel Aguilar, Buenos Aires province’s undersecretary for commercial development and investment promotion, questioned whether Worldcoin could eliminate biometric data.

If the charges are proven, Worldcoin will pay a fine of up to 1 billion Argentine pesos ($1.2 million). Buenos Aires said the company currently only faces fines.

Past PrivacyPrivacy Controversy

The provincial government’s charges against Worldcoin follow similar actions in the European Union, with Spain and Portugal bringing charges against the company. The three sets of charges are somewhat comparable because they address issues of data collection, user consent and data ownership from minors.

The government’s charges against Worldcoin are similar to actions by the European Union, in which Spain and Portugal filed lawsuits against the company. The three sets of charges are somewhat comparable because they address issues such as the collection of data from minors and user consent to data ownership.

Spain and Portugal also imposed a three-month data collection ban on Worldcoin. Buenos Aires did not describe such a ban in its latest notice, instead asking the company to adjust its terms to comply with current regulations in the region.

Amid the controversy, Worldcoin announced in March that its operations were completely legal. It also announced transparency improvements, a move that also drew praise from Ethereum founder Vitalik Buteirn.

Worldcoin is known for its leadership by OpenAI CEO Sam Founded by Altman. Altman is the chairman of Tools for Humanity, a company supporting Worldcoin’s software and hardware development.

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