MercadoLibre Faces Fines Up to $1.88B

MercadoLibre faces potential administrative sanctions and fines of up to $1,883 million for its fintech arm, Mercado Pago, in the province of Buenos Aires. Provincial spokespersons reported to iProfesional on 4 September 2026 that authorities will announce official decisions on 11 September 2026 following an investigation into consumer credit practices.

The probe is led by the Ministry of Production, Science and Technological Innovation under Minister Augusto Costa, backed by Governor Axel Kicillof. Six major digital credit providers, including Mercado Pago, Naranja X, Personal Pay, Cencosud, Uala, and Brubank, accumulated around 2,200 consumer complaints by June 2026 through electronic filings citing abusive practices and lending rates exceeding 1,000% annually once late fees are added.

Authorities demanded companies detail the breakdown of their Total Financial Cost, including pure interest, administrative fees, insurance, and taxes. Investigators also ordered platforms to reveal variable-rate algorithms after discovering different rates charged to different users for identical amounts based on collected data profiles, as well as parameters for setting the Annual Nominal Rate and Annual Effective Rate.

The charges cite violations of National Consumer Protection Law 24,240 and Provincial Law 13,133. Allegations include concealing financing rates prior to transaction confirmations, disguising independent loans as marketplace payment installments, aggressive debt collection involving workplace calls and outreach to relatives, and hiding the 10-day cancellation button within application menus.