ANPD blocks iris biometric payment scheme by World ID operator
Brazil's data protection regulator maintained a prohibition on Tools for Humanity paying users for iris biometric data collection through the World ID system, citing violations of consent rules under Brazil's data protection law and potential irreversible harm to users. The regulator imposed a daily fine of R$ 50,000 for continued violations.
What happened
The Autoridade Nacional de Proteção de Dados (ANPD) maintained a prohibition on Tools for Humanity paying users for iris biometric data collection through World ID, with the decision published in the Diário Oficial da União.
The ANPD established a daily fine of R$ 50,000 if the practice continues. Since the platform's arrival in Brazil in November 2024, users were offered financial incentives including digital currencies and bitcoin in exchange for iris scans, with Worldcoin exchangeable for up to R$ 700 depending on the exchange rate.
Reported impact
The ANPD determined that financial compensation for collecting sensitive biometric data violates the Lei Geral de Proteção de Dados (LGPD) consent rules and may generate irreversible harm to data subjects.
The regulator found that the financial incentive could compromise the freedom of user consent. Tools for Humanity had temporarily interrupted identity verifications after a February appeal to delay the end of remuneration was denied.
Index analysis
The ANPD initially suspended payment in cryprocurrency in January and rejected a startup appeal in February. The regulator stated that proposed changes by Tools for Humanity did not meet the ANPD's requirements to ensure operational legitimacy.
Governance controls
The ANPD's decision affirmed that financial remuneration for sensitive biometric data collection constitutes unlawful compensation under LGPD rules. Tools for Humanity stated it does not store users' biometric data and that the generated digital identity is anonymous, intended to prove human identity online and prevent fraud, but the ANPD maintained the prohibition.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.