Worldcoin, the biometric identity project co-founded by Sam Altman, is facing fresh legal trouble in Argentina. The Ministry of Production, Science and Technological Innovation of Buenos Aires province has indicted the company for allegedly including abusive clauses in user contracts.

Accusations of Deception and Unfair Practices

Argentinian authorities claim Worldcoin’s contracts violate national consumer protection laws. Concerns center on:

• Lack of transparency regarding data storage and deletion of biometric information.
• Potential violation of user rights.
• Clauses permitting service interruption without compensation.
• Waivers of users’ rights to collective legal action.
• Application of foreign law (Cayman Islands) and arbitration in California (USA) instead of Argentinian jurisdiction.

Potential Fines Up to $1.2 Million

If the allegations are proven, Worldcoin could face a hefty fine of up to 1 billion Argentine pesos (roughly $1.2 million). The indictment follows an investigation by the Provincial Directorate for the Defense of Consumer Rights.

Worldcoin’s Data Practices Under Scrutiny

The investigation revealed discrepancies between Worldcoin’s reported data handling and the findings. Specific concerns include:

• Unclear information on whether biometric data is stored or immediately deleted.
• Potential lack of user databases within Argentina, raising questions about data sovereignty.
• Alleged collection of data from minors, despite an 18+ age requirement.
• Biometric data from Argentinian users reportedly being stored in Brazil.

Global Scrutiny and User Growth

This indictment adds to Worldcoin’s growing list of challenges. Similar legal actions have been taken in Spain and Portugal due to privacy and data protection concerns. However, despite these hurdles, Worldcoin’s World App has seen significant user growth, reaching 10 million users and 2 million daily active users globally.