MANILA, Philippines — Sen. Bam Aquino expressed strong opposition to a proposed Department of Trade and Industry measure that would require companies to secure mandatory permits for all advertisements and sales promotions before publication.
The consumer and small business advocate warned that the draft Department Administrative Order would place a heavy financial and bureaucratic burden on online merchants and micro, small, and medium enterprises already dealing with high operational costs and a fuel crisis.
Under the regulatory proposal, businesses would need to submit applications and secure government approval at least 30 working days before launching any promotional campaigns, billboards, videos, sponsored posts, or digital advertisements.
The policy would encompass both internet-based and traditional marketing platforms if the agency officially implements the order.
Aquino, who authored the Go Negosyo Act to streamline business registration and expand market access for smaller enterprises that generate nearly all local employment, argued that the government should avoid introducing new market barriers while small businesses are still recovering from economic shocks.
The lawmaker stated that the proposed rule adds an unnecessary layer of red tape instead of directly solving the root issue of deceptive marketing practices.
While acknowledging that safeguarding consumers remains a core responsibility of the trade department, Aquino noted that effective regulations must remain practical, highly targeted, and appropriate for current market realities.
The 30-day government review period could severely disadvantage businesses by preventing them from launching timely and competitive marketing campaigns in a fast-paced commercial environment.
Aquino cautioned that the policy would likely deter aspiring entrepreneurs and small business owners who lack the financial resources to handle complex bureaucratic processes.
The draft administrative order outlines permit fees ranging from 975 pesos to 9,295 pesos per advertisement, which the senator identified as a major financial strain for startups and digital sellers.
Although the Consumer Act of the Philippines already regulates fraudulent advertisements and promotional events, this new measure would significantly expand permit requirements into digital channels.
Aquino raised potential constitutional concerns regarding the policy, noting that demanding government clearance before any commercial expression could be viewed as a prior restraint on speech.
He clarified that while the Internet Transactions Act grants the trade department regulatory authority over electronic commerce, the law does not authorize a universal permit system for every commercial advertisement.
The trade agency should shelf the current draft and instead prioritize penalizing fraudulent advertisers without disrupting legitimate business operations, according to Aquino.
The objection follows a similar pushback last year when Aquino successfully pressured the department to suspend a mandatory “Trustmark” registration policy for online businesses that he criticized as an unnecessary obstacle.
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