Worldcoin under fire in Colombia over potential data protection lapses

Colombia’s Superintendence of Industry and Commerce (SIC) has initiated formal proceedings against Worldcoin Foundation and Tools for Humanity over alleged violations of the country’s personal data protection regulations.

According to the Aug. 21 announcement, the regulatory body, acting under its mandate to safeguard personal data, issued the charges on Aug. 16.

Regulatory probe

The SIC’s investigation centers on whether the organizations breached Colombian laws governing the collection and processing of sensitive personal data.

The probe aims to determine if Worldcoin Foundation and Tools for Humanity failed to obtain explicit and informed consent from individuals for the collection of their data and whether they neglected to implement adequate policies for data treatment and security.

The investigation will also examine whether the companies provided sufficient mechanisms for addressing complaints and consultations from data subjects.

Should the allegations be substantiated, the SIC could impose severe penalties, including fines of up to 2,000x the monthly minimum wage, the suspension of related activities for up to six months, or the temporary or permanent cessation of operations.

The SIC emphasized its commitment to protecting citizens’ fundamental rights and urged the public to be vigilant in safeguarding their personal information. The notice of charges is currently under review, and the involved parties have been notified. The decision does not allow for appeal.

The ongoing investigation highlights the increasing scrutiny of tech companies’ data practices, especially as they expand operations globally. Worldcoin, which aims to create a global digital identity system using biometric data, has faced similar regulatory challenges in other jurisdictions, raising questions about the adequacy of its data protection measures.

String of challenges

Worldcoin, co-founded by Sam Altman, has faced regulatory scrutiny worldwide due to its plan to create a global digital identity system using biometric data.

The project first came under fire in Kenya over concerns related to data protection laws, which ultimately led to authorities suspending its operations in August 2023. The country later ended its probe into the project without alleging any wrongdoing in June.

European authorities have also been investigating the project since last year for potential violations of the General Data Protection Regulation (GDPR). Germany’s Bavarian State Office is probing Worldcoin’s compliance with consent and data processing standards, while France’s CNIL is investigating whether its methods align with national privacy laws.

Spain has extended the ban on Worldcoin’s operations in the country until the end of this year, while Hong Kong recently banned its data collection over privacy violation concerns. Portugal has also previously suspended Worldcoin’s operations for a three-month period.

Meanwhile, Argentina has charged the project with violating consumer laws and is seeking $1.2 million in fines.

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