Brazil: Board of Directors of the National Data Protection Authority upheld order banning Tools for Humanity from offering financial incentives in exchange for biometric data

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Board of Directors of the National Data Protection Authority upheld order banning Tools for Humanity from offering financial incentives in exchange for biometric data

On 6 August 2025, the Board of Directors of the National Data Protection Authority (ANPD) upheld its ban on Tools for Humanity (TFH) offering financial incentives in exchange for biometric data. The order suspended any form of financial compensation for World IDs created through iris collection in Brazil, citing two main concerns, namely that monetary rewards could undermine genuine consent and that insufficient information about data processing compromised the ability of individuals to give informed consent. The technical note on the vote highlighted that financial incentives could exert undue influence, particularly on vulnerable individuals, and stressed that biometric data processing carries irreversible risks. In response, TFH proposed a new business model in which individuals verifying their World ID would no longer receive direct payments. Instead, verified users could earn rewards by referring others who completed verification. The ANPD determined that this referral scheme still placed financial incentives at the centre of the process, continuing to threaten the freedom and informed nature of consent. The proposal was rejected, and the ban remains in effect.

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Scope

Policy Area
Data governance
Policy Instrument
Data protection regulation
Regulated Economic Activity
software provider: other software
Implementation Level
national
Government Branch
executive
Government Body
data protection authority

Complete timeline of this policy change

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2024-11-11
under deliberation

On 11 November 2024, Brazil’s National Data Protection Authority (ANPD) launched an inspection into…

2025-01-24
under investigation

On 24 January 2025, the Brazilian National Data Protection Authority (ANPD) ordered the company “To…

2025-02-11
in force

On 11 February 2025, Brazil's National Data Protection Authority (ANPD) rejected an appeal by Tools…

2025-03-06
in force

On 6 March 2025, Tools for Humanity appealed the National Data Protection Authority (ANPD) ruling, …

2025-03-25
under investigation

On 25 March 2025, the National Data Protection Authority (ANPD) issued Decision No. 18/2025, reject…

2025-05-26
under appeal

On 26 May 2025, Tools for Humanity again appealed the decision of 25 March 2025 rejecting the Tools…

2025-08-06
in force

On 6 August 2025, the Board of Directors of the National Data Protection Authority (ANPD) upheld it…