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Worldcoin’s WLD Privacy Concerns Spark Lawsuit as Contracts Labeled “Unfair”

Last Updated April 22, 2024 10:28 AM
Teuta Franjkovic
Last Updated April 22, 2024 10:28 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Worldcoin is facing legal action in Argentina.
  • Allegations include clauses favoring Worldcoin and forcing users to waive rights and follow foreign laws for disputes.
  • Worldcoin denies wrongdoing.

Worldcoin , a project that employs biometric identification technology, has come under legal scrutiny  in Argentina.

Allegations have been raised against the company for including what are claimed to be unfair clauses in its contracts, potentially violating the National Consumer Defense Law.

Biometric ID Project Accused of Exploiting Users’ Data

The consumer defense organization in Buenos Aires has pointed out  inconsistencies in how Worldcoin manages biometric data..

The government of Buenos Aires has identified several contractual issues with the cryptocurrency’s operations. They believe these infringe on Argentinian consumers rights. The contracts in question—including the “Terms and Conditions of Use,” “Privacy Notice,” and “Data Consent Form”—contain clauses deemed unfair, such as allowing Worldcoin to suspend services without offering refunds.

Additionally, these contracts compel users to waive their right to participate in collective lawsuits and subject them to the laws of the Cayman Islands, with disputes to be arbitrated in California. This setup contravenes Argentinian consumer protection laws , leading to potential fines exceeding $1 million.

Worldcoin Fights Back

Worldcoin is pushing back  against recent allegations of consumer protection law violations from officials in Buenos Aires. The accusations center around “abusive” contractual clauses that compel users to resolve disputes in international jurisdictions, which officials argue infringes on consumer rights under Argentine law.

Furthermore, concerns have been raised about how Worldcoin handles biometric data, particularly the ethical and legal implications of including minors in their iris scanning procedures. These issues highlight significant tensions between innovative technology applications and established consumer protection standards.

Worldcoin Defends Its Practices Amid Regulatory Scrutiny 

In March, Worldcoin publicly reaffirmed  the legality of its global operations despite regulatory challenges that have prompted some countries to suspend its activities. This statement follows a regulatory action in Spain. There, the National Securities Market Commission (CNMV) imposed a three-month ban on Worldcoin’s operations. The CNMV cited the company’s lack of authorization to provide investment services or conduct securities-related activities.

Despite these setbacks, Worldcoin says it wants to comply with both local and international regulations.

According to the platform’s blog :

“Worldcoin operates lawfully in all of the locations in which it is available.”


Worldcoin’s operations have faced scrutiny from multiple international authorities concerning issues related to transparency and data security. In recent months, regulatory bodies and government agencies in countries such as Germany, France, South Korea, Argentina, the UK, and Kenya  have initiated investigations or taken regulatory actions against the project.

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