OpenAI ‘s Sam Altman’s ambitious project, Worldcoin (WLD), continues to face pressure from authorities around the world. This time, officials from Buenos Aires, the capital of Argentina, reached to him.
Buenos Aires flags problems with Worldcoin data practices
The Ministry of Production, Science and Technological Innovation of Buenos Aires accused Worldcoin of violating user rights. Other Buenos Aires authorities have come down on Worldcoin with inspections. The government identified some discrepancies between the protocol’s stated practices and the data it obtained as a result of its investigation. Undersecretary Ariel Aguilar expressed concern regarding the storage of biometric data and its deletion. According to him, all these processes are not transparent and potentially violate user rights.
“The complexity of these agreements, coupled with the innovative nature of Worldcoin and the lack of clear information, prevents a comprehensive understanding of the system,” he said.
In particular, during the inspections it turned out that Worldcoin allegedly does not inform its clients that only persons over 18 years of age can use the project’s services. This, accordingly, may lead to the collection of data from minors.
Data Storage
The storage location of Worldcoin biometric data also raised questions. As officials emphasized, they are being sent to Brazil, which raises questions about confidentiality.
In addition, some contracts violate national consumer protection laws. Disputed points are contained in the terms of use, privacy notice and consent form for the use of data. They state that Worldcoin may suspend services without compensation and deny the right to class action lawsuits.
All terms of the project contracts involve the resolution of disputes in accordance with foreign law – the Cayman Islands and through arbitration in California, USA. This is contrary to the Argentine Civil and Commercial Code. If found guilty, Worldcoin faces a fine of up to 1 billion Argentine pesos ($1.2 million).
Despite the ban in Spain, Worldcoin daily user base reached 2 million
In early March, authorities in Spain imposed a temporary ban on Worldcoin . Like the Argentine government, they too cited concerns about privacy and data protection. The Spanish data protection authority, the AEPD, called for the immediate cessation of the data collection project. Representatives of the department emphasized that the processing of biometric information poses a great risk to the rights of individuals. Worldcoin responded to AEPD’s allegations. Representatives of the protocol said that the Spanish authorities are distorting data about the project’s technology and ignoring European Union (EU) legislation.
Despite all the obstacles from regulators, the number of World App users is actively growing. At the end of last week, the figure exceeded 10 million, of which 2 million people worldwide use the application on a daily basis.
