SEN. Bam Aquino voiced strong opposition Friday to a proposed regulation by the Department of Trade and Industry (DTI) that would require businesses to secure permits before releasing advertisements and sales promotions.
Aquino warned that such a measure could further burden micro, small, and medium enterprises (MSMEs) and online sellers already grappling with rising operational costs.
Under the proposed Department Administrative Order (DAO), businesses would be required to obtain permits and submit applications at least 30 working days before publishing advertisements or launching promotional campaigns. The proposal covers both traditional and digital advertising platforms, including sponsored social media posts, online videos, billboards, and other promotional materials.
“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 and sponsored the Go Negosyo Act during his first term as chairman of the Senate Committee on Trade, Commerce and Entrepreneurship, stressed that MSMEs remain the backbone of the Philippine economy, accounting for about 99 percent of businesses and jobs nationwide.
The Go Negosyo Law was enacted to improve MSMEs’ access to financing, markets, training programs, and streamlined business registration processes aimed at encouraging entrepreneurship and economic growth.
“Instead of allowing small businesses to strategize to increase their profits, we are creating additional burdens and processes that will hinder their market entry and growth,” Aquino added.
The senator argued that while consumer protection is a legitimate government function, the proposed DAO imposes what he described as excessive bureaucracy that could hamper legitimate businesses rather than effectively address deceptive advertising practices.
“Consumer protection is one of the main functions of the DTI, but regulation must be targeted, practical, and appropriate,” he said.
Aquino raised concerns over the proposed 30-day approval period, saying it is incompatible with the fast-paced nature of modern commerce, particularly in the digital marketplace, where businesses rely on timely marketing campaigns and online promotions to remain competitive.
“In this day and age where business is fast, especially online, it is unfair for businesses to wait a month before they can issue advertisements or promotions,” he said.
The senator warned that the additional compliance costs could discourage aspiring entrepreneurs and smaller enterprises from entering or expanding in the market.
“It is no joke that the proposed fees will add further hardship to our businesses, especially those that are just starting. Maybe instead of encouraging them to do business, they might back down because of the additional costs and lengthy process,” Aquino said.
Under the proposal, permit fees for advertisements could reportedly range from P975 to P9,295 per advertisement, an amount Aquino said could significantly affect MSMEs and online sellers operating on limited capital.
Aquino noted that existing laws, including the Consumer Act of the Philippines, already provide mechanisms to regulate deceptive advertisements and sales promotions. He said the proposed DAO appears to substantially broaden government oversight, particularly in the digital space, and may require further review to ensure consistency with existing ease-of-doing-business policies.
The senator also raised possible constitutional concerns, saying the proposal could be interpreted as a form of prior restraint because it would require government approval before commercial advertisements are released to the public.
Aquino cited the Internet Transactions Act, which grants the DTI authority over internet-based electronic commerce, but argued that the law does not expressly authorize a blanket permit requirement for all advertisements.
He urged the DTI to reconsider the proposal and focus instead on strengthening enforcement mechanisms against fraudulent and misleading advertisements without imposing additional burdens on legitimate businesses.