South Korea’s Personal Information Protection Commission (PIPC) has fined the Worldcoin Foundation and its partner, Tools for Humanity (TFH), a total of $860,000 for breaching the country’s privacy regulations related to the improper collection and transfer of biometric data. The fine stems from violations concerning the gathering of iris data from users without obtaining proper consent.
Violations of Privacy Laws
The investigation, launched in February, revealed that Worldcoin Foundation and TFH collected sensitive biometric data from nearly 30,000 individuals in South Korea without meeting the necessary legal standards for processing such data. Specifically, the PIPC found that users were not fully informed about the data collection process, nor were they properly notified about the transfer of their information abroad.
One of the main issues identified was the insufficient and unclear communication regarding the purpose of data collection, with information only being available in English until March 2024. This lack of transparency further contributed to the failure in obtaining informed consent from users.
Inadequate Data Management and Age Verification
In addition to the improper collection of biometric data, the Commission criticized the organizations for lacking an effective process to delete iris data upon request. The absence of a robust data deletion mechanism and failure to verify the age of users under 14 were also key concerns raised during the investigation.
As a result, the PIPC has directed the Worldcoin Foundation and TFH to implement several corrective measures. These include securing explicit consent for the processing of sensitive data, ensuring that data is not used beyond its original purpose, and enhancing their data deletion protocols to meet user requests more effectively.
Emphasis on Compliance as Biometric Data Use Grows
With the increasing use of biometric data worldwide, the PIPC stressed the critical importance of adhering to data protection laws. The Commission’s decision highlights the non-negotiable nature of such compliance, particularly as biometric technologies become more widespread.
Worldcoin Expands World ID Verification Services
Despite the fine, Worldcoin continues to expand its services globally. Recently, the organization rolled out its World ID verification services in Guatemala, Malaysia, and Poland, in response to rising demand for methods to distinguish human users from AI-powered bots. The company’s surveys have indicated that the need for human verification is growing as threats from advanced AI technologies increase.
The PIPC’s ruling is a stark reminder to Worldcoin and TFH that strict adherence to privacy laws is essential, especially as they continue their global expansion efforts. Ensuring compliance will be crucial to their long-term success and reputation.
