The provincial government of Buenos Aires has taken a significant step by formally accusing Worldcoin of violating consumer laws due to what they claim are “abusive clauses” in its user agreement. Among the allegations made by the government is that Worldcoin’s user agreement allows the company to interrupt services without providing any form of repair or reimbursement to its users. Additionally, it is claimed that users are required to surrender their rights to collective complaints, and that Cayman Island laws are applied to residents of Argentina rather than following Argentina’s own Civil and Commercial Code. The requirement for disputes to be resolved through arbitration in California is also cited as a violation of local regulations.
The government of Buenos Aires revealed the results of audits it conducted on Worldcoin, highlighting two main complaints. Firstly, it was pointed out that the company lacks an age disclaimer, failing to notify users that individuals under the age of 18 are ineligible to access the service. Secondly, concerns were raised over the storage of private data of Argentine users in Brazil, as well as the handling of biometric data collected from the faces and eyes of users. Questions were also raised about the company’s ability to delete biometric data if necessary.
If the accusations made by the government are proven, Worldcoin could face a fine of up to 1 billion Argentine pesos ($1.2 million). This is not the first time that Worldcoin has faced legal challenges, as similar actions were taken in the EU by Spain and Portugal. The charges brought against Worldcoin in all three cases revolve around issues such as data collection from minors, user consent, and data ownership. Spain and Portugal even imposed temporary bans on data collection by Worldcoin, a measure that Buenos Aires did not mention in its announcement.
In response to the allegations, Worldcoin has maintained that its operations are fully legal and has made efforts to improve transparency. These claims were even backed by Ethereum creator Vitalik Buterin. The company was founded by Sam Altman, who is also the CEO of OpenAI and the chairperson of Tools for Humanity. Despite these responses, the accusations made by the provincial government of Buenos Aires are serious and could have significant consequences for Worldcoin if found to be true.
By shining a light on these alleged violations of consumer laws, the provincial government of Buenos Aires is taking a stand to protect the rights and interests of its residents against companies that operate in a manner that is deemed to be unfair or potentially harmful. It remains to be seen how Worldcoin will address these accusations and whether it will make the necessary changes to comply with local regulations.
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