NPC orders Tools for Humanity to stop operations over data privacy concerns

The National Privacy Commission has issued a cease and desist order against Tools for Humanity, ordering the tech firm to stop personal data processing activities related to the World App and Orb verification in the Philippines citing data privacy violations.

According to the NPC, it found that TFH’s data processing practices did not adhere to privacy principles, as it offered monetary incentives in exchange for submitting iris scanning which constituted undue influence, and was deemed “excessive and not necessary” for the purpose of proof of humanity.

The NPC also cited TFH’s failure to inform data subjects of the purpose, scope, extent, and duration of the data processing, and such continued processing exposes Filipinos to “serious and lifelong risks” such as identity theft, fraud, and reputation harm.

“The integrity of a Filipino citizen’s biometric data is non-negotiable, as it is a unique and permanent identifier,” Deputy Commissioner Jose Amelito Belarmino II said in a statement.

“When consent is compromised by the lure of compensation, it ceases to be a genuine expression of choice. This Cease and Desist Order sends a clear message that the NPC will not tolerate practices that exploit socioeconomic vulnerabilities or compromise fundamental data privacy rights in pursuit of business objectives,” he added.

In response, World in the Philippines said it will file a motion for reconsideration, as it said the decision was “surprising,” and a “setback” for responsible digital innovation after the company completed a year-long compliance process.

The company said it underwent extensive regulatory review including participation in the Department of Information and Communications Technology’s Sandbox Program, along with formal registration with the NPC.

“(T)he decision, if not reversed, could deprive millions of Filipinos of technology designed to protect them from scams, identity theft, and AI-driven fraud,” it said.

Founded in 2019 by Alex Bania and Sam Altman of Open Ai, TFH describes itself as a global technology company, established to accelerate the transition towards a “more just” economic system.

“This sudden change in interpretation undermines the certainty that legitimate investors rely on when working with Philippine regulators. All these steps were done transparently and in accordance with the Data Privacy Act of 2012,” Ryuji Wolf, a local operator representing World in the Philippines, said.

“The order comes as a surprise given we worked closely with regulators to ensure that our technology not only meets but exceeds the country’s data protection requirements,” he added.

According to the World in the Philippines, its human system verifies humanity without collecting personal information such as name, address, birthday, or phone numbers, and all biometric images are anonymously processed locally, and deleted within seconds.

“Our system does not identify individuals. It simply verifies that they are unique humans, not bots or AI accounts… We don’t store, sell, or purchase biometric data,” Wolf said.—Jon Viktor Cabuenas/AOL, GMA Integrated News