CHILE Law and Practice Contributed by: Claudio Magliona, Bárbara Reyes and Diego Lisoni, Magliona Abogados
2.2 Recent Case Law SERNAC v WorldCoin (ongoing)
with oversight and sanctioning powers of the law, while a Technical Advisory Council on AI and the Ministry of Science would concentrate the regulatory powers.
• SERNAC has initiated legal action against WorldCoin, a company that scans people’s irises in exchange for cryptocurrency, for alleged violations of the Consumer Law and the Privacy Law. • SERNAC argues that WorldCoin has failed to adequately inform consumers about the purposes for which their biometric data will be used and that the company has not imple - mented appropriate mechanisms to protect consumer privacy. • SERNAC has also expressed concern that WorldCoin has scanned the irises of minors without the consent of their parents or guard - ians. • SERNAC has asked the courts to suspend WorldCoin operations in Chile until it is proven that the company complies with regu - lations. Universities v FNE • The FNE has faced opposition from three universities (PUC, USACH, and the University of Chile) when requesting student contact information for a market study on higher education. • The universities argue that the FNE does not have the authority to request personal data from students (since this requires express legal authorisation according to current Law No 19.628), and that doing so would affect their right to privacy, and that this would violate the principle of proportionality in the processing of personal data. • The FNE defends its competence to request the information, arguing that it is necessary for the market study and that Law No 20.945 grants it the power to require information from individuals.
2. Privacy Litigation 2.1 General Overview
Recent cases in Chile suggest a rise in litigation related to privacy and personal data protection that has reached the public debate, particularly regarding the collection and use of biometric data. The case of Worldcoin, a company that scans people’s irises in exchange for cryptocur - rency, exemplifies this trend. SERNAC has taken action against Worldcoin, filing a complaint in court for questionable data collection practices and even requesting the suspension of its opera - tions in Chile. Numerous citizen complaints have also been filed with SERNAC, highlighting grow - ing public concern about how companies han - dle personal data, especially sensitive biometric data. In addition to the Worldcoin case, the National Economic Prosecutor’s Office ( Fiscalía Nacional Económica , or FNE) has faced opposition from major universities when requesting student con - tact data for a market study. Universities refused to comply with the FNE’s request, arguing that the data requested, and its purposes, do not comply with the principle of proportionality in the processing of personal data. These cases, in the context of the publication of the New Law which will come into force in December 2026, highlight a greater sensitivity on the part of the public regarding issues related to personal data protection in Chile.
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