Dominican Republic: Issued interim ruling in NIPCR investigation into Worldcoin Foundation over alleged abusive clauses requiring users to provide biometric data in exchange for cryptocurrencies

On 14 November 2024, the National Institute for the Protection of Consumer Rights (NIPCR) issued an interim ruling, suspending Worldcoin Foundation's operations in the Dominican Republic. The ruling was based on concerns regarding adhesion contracts that allegedly contained abusive clauses, which required users to provide biometric data in exchange for cryptocurrencies. The ruling followed an analysis by NIPCR's Legal Department, which identified potential violations of Law 358-05, Resolutions 01-2009 and 008-2002, and Law 172-13 on personal data protection. The suspension will remain in effect until NIPCR completes its investigation and verifies the integrity of the company’s commercial objectives. The NIPCR noted that the contracts failed to include the required information, such as the provider's registered office in the Dominican Republic and the specific details of services offered. These omissions allegedly undermine transparency and consumer rights as outlined in the General Law for the Protection of Consumer and User Rights. The next steps will involve monitoring compliance and further scrutiny of the company’s operations under Dominican law.