CinemaBravo

Protect small businesses. Protect online sellers.

Senator Bam Aquino expressed opposition to the Department of Trade and Industry’s (DTI) proposed Department Administrative Order (DAO) requiring mandatory permits for advertisements and sales promotions before publication. He warned that it could further burden micro, small, and medium enterprises (MSMEs) and online sellers already struggling with the oil crisis and high operational expenses.

Under the proposed DAO, businesses may be required to secure permits and file applications at least 30 working days before releasing advertisements, including digital ads, sponsored posts, videos, billboards, and promotional campaigns. It would apply to both traditional and digital advertising platforms if adopted.

“Hindi pa nga nakakabangon ang ating maliliit na negosyo sa epekto ng krisis sa langis, plano na naman natin silang patawan ng panibagong pasanin” (Our small businesses have yet to recover from the effects of the oil crisis, yet there are already plans to impose another burden on them), said Sen. Bam, a known MSME and consumer advocate who authored and sponsored the Go Negosyo Act during his first term as chairperson of the Senate Committee on Trade, Commerce, and Entrepreneurship.

The Go Negosyo Law gives MSMEs—which account for 99 percent of jobs in the country—greater access to markets and financing, provides training and capacity-building programs, and streamlines the business registration process for entrepreneurs starting or expanding their ventures.

“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 added.

(Instead of allowing small businesses to find ways to increase their income, we are creating additional burdens and processes that will hinder their entry into the market and growth.)

Aquino also said the proposed Department Administrative Order (DAO) places an unnecessary burden on businesses, particularly MSMEs, instead of directly addressing and resolving cases involving false advertisements. He added that the policy would only create another layer of bureaucracy for entrepreneurs and small business owners.

“Mahalaga ang consumer protection na isa sa mga pangunahing tungkulin ng DTI, subalit ang regulation ay targeted, praktikal, at naaakma,” he pointed out.

(Consumer protection, which is one of the DTI’s primary responsibilities, is important, but regulations should be targeted, practical, and appropriate.)

The Senator insisted that the 30-day DTI approval is not only burdensome, but could also hinder businesses that rely on timely marketing and promotional campaigns to stay competitive.

“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,” Sen. Bam said.

(In today’s fast-moving business environment, especially online, it is unfair to make entrepreneurs wait a month before they can release an advertisement or promotion.)

Sen. Bam also warned that the proposed DAO could discourage entrepreneurs and MSMEs that do not have the financial capability to comply with additional bureaucratic requirements.

“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 pointed out, adding that the P975 to P9,295 fee per advertisement could heavily burden MSMEs and online sellers.

(The proposed fees are no small matter and would add more hardship to businesses, especially those just starting out. Instead of encouraging people to start businesses, they may back out because of the added expenses and long process.)

Sen. Bam noted that while existing laws already regulate deceptive advertisements and sales promotions under the Consumer Act of the Philippines, the proposed DAO appears to significantly broaden permit coverage, including in the digital space, and may require further review to ensure consistency with ease of doing business policies and the realities faced by MSMEs.

He also expressed concern that the proposed DAO could be considered a prior restraint by requiring government permission before any commercial expression, which may raise serious constitutional issues.

While Republic Act No. 11967, or the Internet Transactions Act, grants the DTI jurisdiction over internet use for electronic commerce, Sen. Bam said it does not create authority to require a universal AP for all advertisements.

He urged the DTI to shelve the proposal and focus instead on strengthening enforcement against deceptive and fraudulent advertisements without penalizing legitimate businesses.

“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.

Last year, Sen. Bam also called out the DTI for imposing an unnecessary burden on MSMEs through its DAO 25-12 making “Trustmark” mandatory for all online businesses, prompting the agency to defer the mandatory registration.