São Paulo's Consumer Prosecutor's Office filed a lawsuit Monday against Tools for Humanity, the company operating World (formerly Worldcoin), and Amazon AWS for allegedly engaging in abusive biometric data collection practices. The legal action alleges the companies deliberately targeted vulnerable populations in São Paulo, offering cryptocurrency payments in exchange for iris scan data from an estimated 400,000 participants. Prosecutors claim World continued distributing crypto rewards through in-app transactions even after Brazil's National Data Protection Authority ordered payment termination in February 2025, and that consumers were not informed about data processing risks or the project's economic purpose. The lawsuit seeks 240 million reais (nearly $47 million) in consumer compensation and demands suspension of all crypto payments linked to biometric collection until a full assessment is completed. The case represents the latest regulatory enforcement action against World's biometric identity verification program, which has faced similar legal challenges in Argentina where authorities imposed a $200,000 fine for consumer protection violations.
São Paulo Prosecutors Allege Targeting of Vulnerable Populations for Biometric Data
The lawsuit filed Monday by São Paulo's Consumer Prosecutor's Office names Tools for Humanity and Amazon AWS as defendants in connection with World's biometric collection activities in São Paulo. Prosecutors allege the companies engaged in abusive practices by deliberately concentrating their operations in peripheral and high-traffic regions to attract people facing socioeconomic issues. The legal filing estimates over 400,000 people participated in World's São Paulo rollout, receiving cryptocurrency compensation in exchange for iris scan data.
The lawsuit petitions for preservation of all data and metadata linked to the biometric collection and seeks to suspend any payment or benefit connected to the data collection until an assessment is carried out. Prosecutors claim consumers were not informed about the economic purpose of the project or the risks regarding processing and storage of their data using AWS servers. The legal action seeks to label these activities as abusive and obtain payment of 240 million reais (nearly $47 million) in compensation for individual consumer losses.
Parliamentary Commission Documents Collection Irregularities and Compliance Violations
A report by the Iris Parliamentary Commission of Inquiry found several irregularities were committed during World's operations in São Paulo. The commission documented the deliberate concentration of World's operations in peripheral and high-traffic regions to attract people facing socioeconomic issues to deliver their biometric data for crypto rewards.
Prosecutors allege World continued to deliver crypto rewards using internal app transactions even after Brazil's National Data Protection Authority ordered their termination in February 2025. The lawsuit claims consumers were not informed about the economic purpose of the project or the risks regarding the processing and storage of their data using Amazon AWS servers. The legal filing seeks suspension of all payments or benefits linked to biometric data collection pending completion of a full assessment.
World Denies Data Collection Claims Amid Prior Argentina Enforcement Action
On its page, World states it "does not collect, store or sell any personal data, including iris data, and verified World ID holders are anonymous." The company's statement directly addresses the allegations contained in São Paulo's lawsuit regarding data handling practices.
World has faced similar enforcement actions in Argentina, where authorities imposed a $200,000 fine for various National Consumer Defense Law violations. The Argentina case involved allowing minors to enroll in the initiative due to lax ID checks and failing to disclose biometric data-processing procedures. The São Paulo lawsuit represents the second major regulatory action against World's biometric collection program in South America.
FAQ
What did São Paulo prosecutors allege in the lawsuit filed Monday against World and Amazon AWS?
São Paulo's Consumer Prosecutor's Office alleges Tools for Humanity (operating World) and Amazon AWS engaged in abusive biometric data collection practices by deliberately targeting vulnerable populations in peripheral and high-traffic regions of São Paulo. Prosecutors claim the companies offered cryptocurrency payments to an estimated 400,000 participants in exchange for iris scan data, and that consumers were not informed about data processing risks or the project's economic purpose using AWS servers.
Why did prosecutors claim World violated Brazil's data protection order?
Prosecutors allege World continued to deliver crypto rewards using internal app transactions even after Brazil's National Data Protection Authority ordered payment termination in February 2025. The lawsuit seeks suspension of all payments or benefits linked to biometric data collection and demands 240 million reais (nearly $47 million) in consumer compensation for the alleged violations.
What prior enforcement action has World faced for similar practices?
World faced enforcement action in Argentina where authorities imposed a $200,000 fine for National Consumer Defense Law violations. The Argentina case involved allowing minors to enroll due to lax ID checks and failing to disclose biometric data-processing procedures. The São Paulo lawsuit represents the second major regulatory action against World's biometric collection program in South America.
