After reaching a collaboration agreement with Procon-SP to fight advertisements of illicit products, Mercado Livre joined the Antipiracy tab of National Council for Combating Piracy (CNCP), which is part of the Ministry of Justice and Public Security (MJSP) and brings together good practices to curb advertisements and the sale of illegal products.
Mercado Livre signed on the 20th of this month — the same day as the meeting with Procon-SP — a term of adhesion to the CNCP’s Antipiracy guide. The document was prepared by Senacon (National Consumer Secretariat) in 2020. Since then, there has been pressure on the company to curb the sale of pirated and illegal items.
Last week, Anatel declared that it could fine Mercado Livre for the sale of unapproved cell phones. According to the federal agency, the retailer should be held responsible for being part of the sale of pirated items, providing the delivery and storage of such goods. The agency is also considering sending inspection agents to inspect the company’s warehouses.
According to the retailer, from January 2020 to July this year, more than 30 million advertisements for illegal items were excluded. As a result, Mercado Livre says it has barred the sale of 1.3 million pirated products.
In 2020 alone, the platform invested more than $100 million in the BPP — the Trademark Protection Program, literally translated — which includes automated and artificial intelligence solutions to combat piracy. “From the BPP, we have established a partnership system with more than 5.7 thousand intellectual property holders, with thousands of rights in Latin America, who can report any irregular products on the platform free of charge,” says Ricardo Lagreca, Legal Director of the Market Free.
BPP works as a whistleblower and quick removal tool for illegal advertisements. And it has been showing results: 30% of advertisements were removed due to complaints made by the program — between January 2020 and June 2021. According to Lagreca, 68,000 illegal sellers were banned in the same period.
Since applying the BPP tool, Mercado Livre claims that it has permanently banned 20 thousand sellers. Regarding the monitoring carried out to identify who violates the rules on a recurring basis, the company claims that 3 out of 4 sellers change their posture and do not break the platform’s rules again.
In addition to the use of technology, more than 250 employees carry out daily monitoring to ban sellers and irregular advertisements, based on a database created in partnership with intellectual rights holders.
Before, Mercado Livre followed the Marco Civil da Internet
Before adhering to the CNCP guide, the Free Market was contrary to the text of the anti-piracy agency: the company agreed with a precedent established by the Marco Civil da Internet, which provides for the exemption of retailers from liability for advertisements of illegal products; and who sees such ads as “network provider freedom of speech”.
François Martins, Director of Government Relations at Mercado Livre, said in a statement:
“The adhesion of Mercado Livre to the guide of the National Council to Combat Piracy is a milestone for the company and for the e-commerce sector, given the power of the impact and dialogue we have with thousands of companies, users and brands in Brazil and region”.
By being part of the anti-piracy initiative, the company is required to analyze complaints related to piracy and needs to have ways to immediately exclude irregular sellers.
Already adhered to the guide: Americanas, Via, Magazine Luiza, Renner, among other large retailers. The Ministry of Justice confirmed to the Economic value that there were more than 50 adhesions to the anti-piracy guide. For now, OLX, AliExpress and Shopee are out. These companies still adhere to the Marco Civil da Internet.