Sen. Paolo Benigno "Bam" Aquino IV opposed a proposed Department of Trade and Industry (DTI) order that would require businesses to secure government permits before publishing advertisements and sales promotions, warning that the measure could further burden micro, small and medium enterprises (MSMEs) and online sellers.
Under the draft Department Administrative Order (DAO), businesses would be required to file permit applications at least 30 working days before releasing advertisements, including digital ads, sponsored posts, videos, billboards and promotional campaigns. The proposal would cover both traditional and online platforms.
Aquino urged the DTI to withdraw the proposal and instead focus on stricter enforcement against deceptive and fraudulent advertisements.
“The DTI should focus on going after deceptive and fraudulent advertisements, instead of creating additional hurdles for legitimate businesses trying to reach their customers,” Aquino said.
The senator said the proposed requirement could negatively affect MSMEs, many of which are still recovering from rising operational expenses and the impact of the oil crisis.
“Our small businesses have not yet recovered from the impact of the oil crisis, and we are planning to impose another burden on them,” Aquino said.
Aquino, who authored the Go Negosyo Act during his first term as chair of the Senate Committee on Trade, Commerce and Entrepreneurship, said the draft order does not directly address deceptive advertising practices and instead creates “an unnecessary burden and an additional layer of bureaucracy,” particularly for small businesses that depend on timely marketing efforts to remain competitive.
He warned that the proposed 30-day approval process could discourage entrepreneurs and online sellers who may not have the financial resources to comply with additional regulatory requirements.
The senator also raised concerns over possible constitutional issues, saying the proposal may amount to prior restraint by requiring government approval before commercial advertisements can be released.
While acknowledging that the Internet Transactions Act gives the DTI jurisdiction over online commerce, Aquino argued that the law does not authorize the agency to impose a universal advertising permit system.
He added that existing laws, including the Consumer Act of the Philippines, already provide mechanisms to regulate deceptive advertising practices. Aquino said the draft DAO appears to significantly expand permit coverage, particularly in the digital space.
Aquino called for further review of the proposal to ensure it remains consistent with ease-of-doing-business policies and the operational realities faced by MSMEs and online entrepreneurs.
