DTI urged to review, reconsider mandatory 'Trustmark'

Senator Bam Aquino on Monday, 6 October, urged the Department of Trade and Industry (DTI) to review and reconsider its order making “Trustmark” mandatory for all online businesses, calling it an unnecessary burden on micro, small, and medium enterprises (MSMEs).

"I call on the DTI to review the requirement for online businesses to have a Trustmark. Let's not give them an additional burden and help them grow and prosper," Aquino said.

The Philippine Trustmark is a digital badge that serves as government recognition for online merchants and platforms that commit to trustworthiness, safety, and fair e-commerce practices.

Under its Department Administrative Order 25-12, the DTI has given them until 31 December to comply with the Trustmark requirement.

The senator also warned that the policy may discourage MSMEs from bringing their businesses online to digital marketplaces and other platforms.

Aside from imposing an added burden on MSMEs, Aquino said it contradicts existing laws, such as the Internet Transactions Act and the Ease of Doing Business Act.

Under the Internet Transactions Act, Aquino said the Trustmark is a voluntary program that MSMEs, particularly online sellers, may choose to avail of to boost consumer confidence in online transactions.

Aquino also noted that the policy contradicts the Ease of Doing Business Act, stressing that instead of streamlining processes, the DTI is adding another requirement that further burdens MSMEs.

"We are not opposed to any action to strengthen our consumer protection, but it must be in accordance with the law and other existing policies," he continued..

Aquino likewise flagged the annual P1,130 Trustmark registration fee, which comes on top of existing business registration costs and further strains MSMEs, particularly those just starting out.

"It appears that this is like a tax that our online traders must pay every year. This is not timely, especially now that there are issues that the taxes paid by the people only go to corruption," he added.

Aquino argued that if the DTI really wants to help online MSMEs thrive, it should integrate the Trustmark into the business registration or renewal process and make it free of charge to ease their financial burden and encourage more entrepreneurs to go digital.

"It would be better if the DTI just made it free. They can help many MSMEs, they can even encourage other businesses to go online to expand their market."