- Worldcoin and TFH faced $830K in fines for mishandling personal data and failing to properly inform users about its usage.
- Fines hit Worldcoin hard after they failed to translate key forms or provide data deletion options, raising privacy concerns.
- TFH lacked age checks for under-14 users, prompting South Korea’s watchdog to crack down on privacy protection for minors.
The Personal Information Protection Commission in South Korea penalized Worldcoin and Tools for Humanity 1.1 billion Korean won (about $830,000) for breaking privacy rules. These violations resulted from the unapproved collection, use, and dissemination of personal data.
Furthermore, Worldcoin neglected to inform users of the reason for data gathering or the duration of data storage. Notably, before March 22, no Korean translation of the biometric consent form was provided.
Consequently, the PIPC fined the Worldcoin Foundation 725 million won ($545,000) and Tools for Humanity 379 million won ($285,133) for their roles in these breaches. Besides these fines, the regulator stated that Worldcoin did not inform users where their personal information would be transferred or the identity of the receiving party. This failure undermined South Korea’s privacy laws. Moreover, the company did not provide a method for users to request deletion of their iris data.
Concerns Over Age Verification and Data Handling
However, the violations were not limited to personal data handling. TFH lacked adequate age verification for users under 14 until April. This gap in age-checking posed a concern regarding privacy rights for minors in South Korea.
The PIPC emphasized that Worldcoin needs stronger protocols to secure user consent and ensure that personal information is protected. Besides, they stressed the importance of transparency in handling sensitive biometric data.
Moreover, the PIPC did not ban the collection of such data in South Korea, provided Worldcoin addresses the outlined issues. Hence, the investigation has now concluded, and the project can continue operating as long as it adheres to the local privacy regulations.
Commitment to Privacy Moving Forward
In response to the penalties, Tools for Humanity acknowledged the decision and affirmed its compliance with South Korean laws. According to the firm, they have already addressed the weak points highlighted by the regulator. Moreover, they expressed satisfaction that the investigation confirmed their biometric verification system complies with local laws.
Despite the fines, Worldcoin and Tools for Humanity aim to strengthen their privacy protections moving forward. This decision marks a significant development in safeguarding personal data while allowing Worldcoin to continue its mission.
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