Senator Bam Aquino: Proposed DTI rule on ads may be a burden to small and medium companies

Senator Bam Aquino expressed strong opposition to the Department of Trade and Industry’s (DTI) proposed Department Administrative Order (DAO) that would require businesses to secure permits for advertisements and sales promotions prior to publication.

Aquino noted that this requirement could place an unnecessary burden on micro, small, and medium enterprises (MSMEs) and online sellers, who are already navigating rising costs and the impact of the oil crisis.

Under the proposed draft policy, businesses would be required to apply for approval at least 30 working days before releasing any advertisements.

This requirement covers both traditional and online platforms, including digital content such as sponsored posts, videos, billboards, and other promotional materials.

Aquino, a long-time MSME advocate who authored and sponsored the Go Negosyo Act, warned that the measure could further slow down small businesses trying to compete in a fast-moving market.

“Hindi pa nga nakakabangon ang ating maliliit na negosyo sa epekto ng krisis sa langis, plano na naman natin silang patawan ng panibagong pasanin,” said Aquino.

The law he helped push provides support for MSMEs—considered to make up 99 percent of businesses in the country—by improving access to financing, training programs, and streamlined business registration processes.

He said instead of helping small entrepreneurs maximize opportunities, the proposed policy would introduce additional barriers that could restrict their ability to grow and reach customers.

“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.

Aquino also argued that while consumer protection is an important mandate of the DTI, regulations must remain targeted and practical rather than overly restrictive.

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

He warned that requiring a 30-day approval process could disrupt businesses that depend on timely marketing strategies, especially in the digital economy where trends and campaigns move quickly.

“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,” Aquino said.

Aquino further raised concerns that additional fees—ranging from ₱975 to ₱9,295 per advertisement—could discourage new entrepreneurs and small sellers who lack the financial capacity to comply with more bureaucratic requirements.

He said this could result in fewer people entering the business sector or existing small players scaling back their operations due to added costs and delays.

“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 said.

Aquino also noted that existing laws such as the Consumer Act of the Philippines already regulate deceptive advertising and promotions, suggesting the proposed DAO may expand government control beyond what is necessary, particularly in digital advertising.

He raised additional concerns that the measure could amount to prior restraint by requiring government approval before commercial content is released, which he said may raise constitutional issues.

While acknowledging the Internet Transactions Act gives the DTI authority over online commerce, Aquino said it does not explicitly authorize a blanket permit requirement for all advertisements.

He urged the DTI to reconsider the proposal and instead focus on stricter enforcement against deceptive and fraudulent ads rather than imposing additional compliance requirements on 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.

Aquino also recalled that he previously questioned another DTI policy requiring mandatory “Trustmark” registration for online businesses, which was later deferred following concerns from the sector.

-Paraluman News