The Worldcoin Foundation and Tools for Humanity (TFH) were fined a total of $860,000 by South Korea’s Personal Information Protection Commission (PIPC) for violations related to the collection and transfer of biometric data. The organizations were penalized for improperly collecting iris data without adequate consent, failing to inform users about the data transfer abroad, providing insufficient information to users about data collection and purpose, and lacking age verification procedures for users under 14. Both parties were instructed to obtain separate and explicit consent for the processing of sensitive data, ensure data is not used beyond its original purpose, and enhance their data deletion capabilities.
The investigation, which began in February, found that the Worldcoin Foundation and Tools for Humanity collected sensitive biometric information from nearly 30,000 individuals in South Korea without meeting legal requirements for data processing. The commission emphasized the importance of compliance with data protection laws, especially as the use of biometric data becomes more prevalent. Both organizations were criticized for not having a robust deletion process for iris data and for failing to implement age verification procedures for users under 14. In response to the violations, they were instructed to take specific steps to rectify the issues and adhere to data protection laws.
Worldcoin recently expanded its World ID verification services to Guatemala, Malaysia, and Poland to address the growing demand for advanced methods to distinguish between human users and AI-powered bots in cyberspace. The organization conducted surveys in various regions that indicated a need for human verification services to combat new threats posed by bots. The expansion of World ID verification services demonstrates the organization’s commitment to meeting the evolving needs of users and combating emerging challenges in the digital space.
South Korea’s PIPC decision serves as a clear message to organizations that compliance with data protection laws is non-negotiable. For the Worldcoin Foundation and Tools for Humanity, correcting the violations will be crucial as they continue to pursue global expansion. The fine imposed by the commission highlights the consequences of failing to adhere to data protection regulations and underscores the importance of responsible data handling practices in today’s technological landscape. It is essential for organizations dealing with sensitive data to prioritize compliance with privacy laws to maintain trust with users and avoid legal repercussions.
