According to Wu, Worldcoin is facing legal action in Buenos Aires for alleged violations of Argentina's National Consumer Protection Law. The company is accused of adding unfair clauses to contracts that violate consumer rights, such as allowing suspension of services without refunds, forcing users to waive their collective claims rights, and setting arbitration in California in violation of local law. In addition, the company processed user iris data stored in Brazil and did not prevent minors from registering. Worldcoin could face fines of more than $1 million for these violations.