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Buenos Aires province has accused the cryptocurrency Worldcoin of violating consumer laws, leading to a warning of a $1.2 million fine. This action by the provincial government follows similar allegations from Spain and Portugal. Let’s look into the details of this development.
Warnings Issued to Worldcoin
The Buenos Aires provincial government officially stated that Worldcoin violated consumer laws through “malicious clauses” in its user agreement. According to the administration’s statement, Worldcoin’s unfair agreement allowed it to disrupt services without offering repair or reimbursement, thus harming users.
Additionally, the administration claims that Worldcoin requires users to waive their collective complaint rights and instead imposes Cayman Islands laws on residents of Argentina. Moreover, it is alleged that any disputes must be resolved through arbitration in California, which is highlighted as a practice contrary to the Argentine Civil and Commercial Code.
Results of Inspections on Worldcoin Announced
The provincial government also announced the results of its inspections on Worldcoin, raising two main complaints. Firstly, there is no age waiver indicating that individuals under 18 cannot access the service.
Secondly, it was revealed that Worldcoin stores special data about Argentine users internationally in Brazil. This is associated with contradictory information about the “use, protection, and storage” of biometric data collected from users’ faces and eyes.
Lastly, the issue of data deletion was also brought up. Ariel Aguilar, Undersecretary of Commercial Development and Investment Promotion in Buenos Aires, questioned whether Worldcoin could eliminate biometric data.
If Allegations Proven, a $1.2 Million Fine Will Be Imposed
If the allegations are proven, Worldcoin will have to pay a fine of up to 1 billion Argentine pesos (approximately $1.2 million). However, Buenos Aires currently states that the company will only face a fine.
The allegations by Buenos Aires against Worldcoin follow similar actions in the EU, where Spain and Portugal have filed complaints against the company.
Worldcoin is known to be founded by Sam Altman, CEO of OpenAI. Altman also heads Tools for Humanity, a software and hardware development company supporting Worldcoin. Looking at the WD price, we see it trading at $4.96.
