A senator urged the Department of Trade and Industry (DTI) to drop its proposed rule requiring businesses to secure permits before publishing advertisements and sales promotions, warning that the policy could add another layer of cost and red tape for micro, small, and medium enterprises (MSMEs).
The proposed Department Administrative Order would require businesses to apply for permits at least 30 working days before releasing advertisements, including digital ads, sponsored posts, videos, billboards, and promotional campaigns.
Senator Bam Aquino said the proposal could hurt small businesses and online sellers still grappling with high operating costs and the impact of rising fuel prices.
“Hindi pa nga nakakabangon ang ating maliliit na negosyo sa epekto ng krisis sa langis, plano na naman natin silang patawan ng panibagong pasanin,” he said.
The senator, who authored and sponsored the Go Negosyo Act during his first term, said the government should help entrepreneurs expand their market reach instead of creating additional requirements that may slow them down.
“Imbis na pabayaang makadiskarte ang mga maliliit na negosyo para madagdagan ang kita, lumilikha tayo ng dagdag na pasanin at proseso na hahadlang sa kanilang pagpasok sa merkado at paglago,” he said.
Aquino said consumer protection remains an important function of the DTI, but regulations must be targeted, practical, and appropriate to the problem they seek to address.
“Mahalaga ang consumer protection na isa sa mga pangunahing tungkulin ng DTI, subalit ang regulation ay targeted, praktikal, at naaakma,” he said.
He warned that requiring a 30-day approval period could be especially damaging to businesses that depend on timely promotions, particularly those operating online where marketing trends and customer demand move quickly.
“Sa panahon ngayon kung saan mabilis ang takbo ng negosyo, lalo na online, hindi makatarungan na paghintayin ng isang buwan ang mga negosyante bago sila makapaglabas ng advertisement o promotion,” he said.
The senator also raised concerns over the proposed fees, which he said could range from P975 to P9,295 per advertisement, saying these may discourage start-ups and small entrepreneurs from promoting their products.
“Hindi rin biro ang mga nakalagay na bayarin na dagdag pasakit pa sa ating mga negosyo, lalo na sa nagsisimula pa lang. Baka sa halip na mahikayat natin silang magnegosyo ay baka mag-atrasan sila dahil sa dagdag gastos at matagal na proseso,” he said.
Aquino noted that deceptive advertisements and sales promotions are already regulated under the Consumer Act of the Philippines. He said the proposed DAO appears to expand permit requirements significantly, including into the digital space, and should be reviewed for consistency with ease-of-doing-business policies.
He also warned that requiring government approval before the release of commercial advertisements could raise constitutional concerns, including possible prior restraint.
While the Internet Transactions Act gives the DTI authority over electronic commerce, Aquino said it does not authorize a universal advertising permit requirement.
“The DTI should focus on going after deceptive and fraudulent advertisements, instead of creating additional hurdles for legitimate businesses trying to reach their customers,” he said.
Aquino previously criticized the DTI’s move to make “Trustmark” registration mandatory for online businesses, which the agency later deferred.