THE National Privacy Commission (NPC) has issued a cease-and-desist order against Tools for Humanity (TFH) for data privacy violations.
“The order directs TFH to immediately stop all personal data processing activities related to the World App, Orb verification, and all associated platforms in the Philippines, including the collection and processing of biometric data such as iris scans,” the NPC said in a statement late Wednesday.
According to the NPC, the grounds for the issuance of the order include invalid consent due to undue influence, lack of transparency and information, excessive collection of biometric data, and risk of grave and irreparable injury.
“The integrity of a Filipino citizen’s biometric data is non-negotiable, as it is a unique and permanent identifier,” said Deputy Privacy Commissioner Jose Amelito S. Belarmino II.
“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.
TFH is a limited liability corporation organized and registered in the US. Its operator in the Philippines is WCPH Corp.
World in the Philippines said that it will file a motion for reconsideration and described the order as a “setback for responsible digital innovation.”
“The decision, if not reversed, could deprive millions of Filipinos of technology designed to protect them from scams, identity theft, and artificial intelligence (AI)-driven fraud,” it said in a statement.
It said that the company went through extensive regulatory review which includes its participation in the Department of Information and Communications Technology Sandbox Program and formal registration with the NPC.
“This sudden change in interpretation undermines the certainty that legitimate investors rely on when working with the Philippines,” said Ryuji Wolf, a local operator representing World in the Philippines.
“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 company, its proof of human system verifies that a person is human without collecting personal information such as name, address, birthday, or phone number.
“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,” said Mr. Wolf. — Justine Irish D. Tabile