Colombian Watchdog Accuses Worldcoin of Data Privacy Violations

Colombia’s data protection authority, the Superintendence of Industry and Commerce (SIC), has filed charges against Tools for Humanity and the Worldcoin Foundation, accusing them of violating the country’s personal data protection laws.

The charges come in response to concerns about Worldcoin’s biometric data harvesting practices, particularly through its “Orb” iris scanners, which have been rolled out globally.

The SIC’s action focuses on whether Worldcoin has breached Law 1581, which mandates that data processors in Colombia obtain informed consent from individuals, provide clear and transparent information, and ensure users’ rights to request data removal.

This scrutiny follows similar actions taken by regulators in other countries, including Spain, Portugal, Hong Kong, and Kenya, where the Orb initiative has faced temporary bans due to privacy concerns.

Worldcoin has faced criticism for allegedly not meeting its privacy promises. An investigation by MIT Technology Review highlighted discrepancies between Worldcoin’s public assurances and the actual user experience, accusing the company of deceptive marketing practices and insufficient consent procedures.

Despite these challenges, Tools for Humanity, the company behind Worldcoin, has pushed back against regulatory actions. In response to a ban imposed by the Spanish Data Protection Agency (AEPD), the company filed a formal complaint, arguing that the AEPD lacks jurisdiction over its operations since it is incorporated in Germany, not Spain.

Late last month, Worldcoin was fined 194 million pesos (roughly $235 thousand USD) by Buenos Aires Province for irregularities in handling biometric data, particularly related to its iris scanning technology. The fine, imposed by the Ministry of Production, Science, and Technological Innovation, addressed concerns about the platform’s protection of sensitive data and problematic contract terms, including unclear age limits and clauses that violate local consumer protection laws.

Source: CCN

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August 23, 2024 – by Ali Nassar-Smith