Buenos Aires minister details ultimatum to Mercado Libre over 'abusive' terms

Augusto Costa, the Minister of Production for Buenos Aires province, has defended the regional government's move to formally warn Mercado Libre over what it terms "abusive" business practices. Costa emphasized that Mercado Libre holds dominant market positions and is the subject of numerous consumer complaints within the province.

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Mercado Libre received more than 2,400 complaints from consumers in the first four months of the year.

"Mercado Libre received more than 2,400 complaints from consumers in the first four months of the year," Costa stated. These complaints reportedly involve issues with product returns, unfair contract terms, fraud, and unauthorized transactions charged to users. Costa, a close associate of Governor Axel Kicillof, explained that the government initiated an "ex officio" review of Mercado Libre's terms and conditions, the fine print that users often overlook when downloading the app.

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That nobody looks at the fine print implies that there are different clauses that go against the Law of Defense of the Consumer.

Costa argued that these overlooked terms contain clauses that violate the Consumer Defense Law. He explained that the law exists because consumer relationships with large companies like Mercado Libre are inherently unequal. "When, without knowing it, you accept the terms and conditions of Mercado Libre, you are accepting that they can charge you fees 'in some cases,' according to the clause, and that goes against what is basic in any purchase-sale agreement for a service, which is that the consumer must know what they are going to pay."

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When, without knowing it, you accept the terms and conditions of Mercado Libre, you are accepting that they can charge you fees 'in some cases,' according to the clause, and that goes against what is basic in any purchase-sale agreement for a service, which is that the consumer must know what they are going to pay.

The government's specific grievances include Mercado Libre's ability to unilaterally change terms and conditions, making users responsible for account security breaches, and reserving the right to retain user funds or income to cover alleged debts. The provincial government has formally notified Mercado Libre, founded by Marcos Galperin, and warned of a potential fine of $1.815 million if the company does not remove these clauses. Mercado Libre has denied the accusations and defended its platform's operations.

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The company assumes that it can change the terms and conditions, that is, the rights and obligations of the consumer, as many times as it wants, and that if the consumer continues to use the platform, they are accepting those changes.