After micro, small, and medium enterprises (MSMEs) took to social media to air their rants about the draft of a supposed measure requiring them to pay fees to obtain permits before posting advertisements online, the Department of Trade and Industry (DTI) clarified that no final decisions have been made yet on the controversial announcement.
“The DTI clarifies that it is not pursuing, implementing, or adopting the drafted Department Administrative Order (DAO) concerning a pre-clearance regulatory regime for advertising materials,” the DTI advisory, posted on its official Facebook page on Saturday, read.
“The DTI assures the public and the business community that this internal draft does not reflect current policy direction and will not be finalized or enforced. We remain a committed partner in economic growth, ensuring consumer protection is balanced with innovation and a competitive business environment,” it added.
On 8 May, the DTI posted that it is inviting the public and stakeholders to submit comments/position papers on the draft department administrative order, with a submission deadline of 15 May.
However, the post was already taken down, but the DTI said that part of the process of formulating a DAO is the solicitation of comments and position paper from the affected sectors.
Based on social media postings, the reported fees could range from P975 to P9,294 per ad or promo, depending on the scope and classification.
MSME freelancers, content creators, small online shops and startup businesses immediately ranted on social media, fearing that the added costs and paperwork could hurt smaller sellers more than larger companies.
Many are also questioning how the rule would apply to social media posts, sponsored content, livestream selling, and digital marketing campaigns.
Senator Bam Aquino was also quick to comment on the issue, defending the MSMEs.
“Our small businesses have not yet recovered from the impact of the oil crisis and high costs, and they will be burdened with another burden — the DTI’s planned DAO that will set mandatory permits for advertisements and sales promotions before they are published. This will add to the hardship for MSMEs and online sellers,” he said.
The lawmaker, who then-chaired the Senate Committee on Trade, Commerce, and Entrepreneurship, said it is unfair to add another layer of fees and a lengthy process to small businesses before they can run advertisements and promotions for their businesses.
“In this day and age, when business is so fast, especially online, entrepreneurs should not have to wait months before they can run advertisements or promotions. The P975 to P9,295 fee per advertisement is an additional burden on MSMEs and online sellers,” he said.
He stressed that consumer protection is important, but must be practical, fair, and relevant to the real situation of our businesses.
“Instead of increasing bureaucracy, we should focus more on deceptive and fake advertisements while helping legitimate businesses to recover, grow, and create jobs for Filipinos,” he said in Filipino.