MercadoLibre

Argentina's Buenos Aires Province government opened an investigation into Mercado Pago and other digital wallets after receiving 2,240 consumer complaints in the first half of 2026 alleging harassment, unclear loan information and abusive practices, with potential fines up to 1,883 million pesos. Separately, Partido Obrero leader Gabriel Solano filed a criminal usury complaint against Mercado Libre CEO Marcos Galperin and the company's board, alleging Mercado Pago's consumer loans carried an effective total annual cost (CET) of up to 1,375.94%, roughly 21 times the rate charged for comparable products in Brazil, and sought suspension of loan collections pending investigation. Mercado Libre had not agreed to a settlement (Conduct Adjustment Agreement) proposed in a related Bahia, Brazil prosecutorial matter as of reporting.

On June 17, 2026 Argentina's official lottery regulator publicly stated that Mercado Pago's promoted 'friends tournaments' allowing users to wager on World Cup matches constitute illegal gambling under Argentine law, since the product offered cash prizes funded from user stakes outside the official licensing regime. The regulator warned of criminal exposure for Mercado Pago and demanded the product be discontinued.

Argentina's Buenos Aires provincial government opened a consumer-protection investigation in late May 2026 into MercadoLibre over allegedly abusive contract terms imposed on platform sellers and buyers, with regulators publicly indicating a fine of up to 1.8 billion pesos was under consideration. The probe followed earlier provincial enforcement against Rappi for undisclosed surcharges and is part of a broader Buenos Aires push to regulate platform contracts and undisclosed fees.

In January 2026, MercadoLibre (Mercado Livre) laid off approximately 119-140 employees in Brazil, citing AI tool expansion, without notifying or negotiating with the SINDPD-SC union, arguing severance agreements were individual benefits rather than collective labor matters. Investigative outlet Reporter Brasil and an academic study (Unicamp/SciELO preprint) documented that severance agreements included indefinite confidentiality clauses requiring workers to repay compensation if they spoke about their termination, along with a broader pattern of retaliating against union-active employees, blocking union communications, and excluding workers from safety committees. A Brazilian labor court found the mass dismissal illegal for lack of union notification and ordered reinstatement of at least one affected employee; MercadoLibre may appeal.

A November 2023 academic study published by Bristol University Press found MercadoLibre's combination of algorithmic management with discretionary human management 'limited workers' autonomy, increased control to virtually any time spent by workers, and imposed stressful working conditions with negative implications for health and safety.' The study noted the company's hiring strategy relies 'extensively on labour broking.'