Mercado Libre uses AI to detect fraudulent advertisements

Mercado Libre claims that its suite of technologies can analyze more than 5,000 variables in less than a second to identify, pause or remove non-compliant ads in real time.
Mercado Libre employs technologies such as artificial intelligence (AI) and machine learning (ML) to combat irregularities on its platform.

Mercado Libre employs technologies such as artificial intelligence (AI) and machine learning (ML) to support its multidisciplinary teams in the fight against irregularities on its platform.

According to the Transparency Report for the first half of 2023, during that period, only 0.74% of the over 614 million ads created or modified had to be removed due to violations of platform rules.

Of these removed ads, approximately 98% were detected thanks to AI and ML tools that learn from reports and previous removals, enabling automatic moderation of suspicious content.

On average, for every report received, the system removes eight times more irregular ads.

Mercado Libre claims that its set of technologies can analyze more than 5,000 variables in less than a second to identify, pause, or eliminate in real-time ads that do not comply with e-commerce standards.

“The investment we make in technology is essential to ensure security throughout our ecosystem. As part of our proactive work to combat irregularities, in addition to technology, we have hundreds of employees conducting manual searches.”

“We work in collaboration with rights holders and public and private initiatives, which has helped increase security and the experience of millions of people in Latin America,” explains Humberto Chiesi Filho, Legal Director of Mercado Libre.

To report suspicious ads, users can notify the platform using the ‘report’ button present on all of them. When a report is filed, the ad is paused and becomes invisible.

The seller has four days to contest the report, while the reporter has the same period to withdraw or confirm it.

In case of confirmation, the ad is permanently removed, and the seller’s behavior is evaluated to determine possible sanctions, ranging from warnings to account closure and reporting to authorities.

“Due to the information and education work we continuously do with our users, more than 70% of reported sellers change their behavior and do not violate platform rules again,” assures the executive.

In addition to providing tools to brands to report ads infringing on their rights, Mercado Libre operates the Brand Protection Program (BPP), a program that uses artificial intelligence and automated technology to combat piracy, counterfeiting, and fraud in Latin America.

Currently, the BPP has over 10,000 members of intellectual property rights holders or their representatives, who use the tool for free to report suspicious products and remove ads violating trademark, copyright, patent, industrial design, or related rights.

According to Mercado Libre, with technological advancement and the platform’s continuous learning, the number of reports from AFF members has decreased, showing a 9.5% reduction compared to the previous report.

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