The Department of Trade and Industry (DTI) said it is no longer pursuing, implementing, or adopting the draft Department Administrative Order (DAO) that would have required businesses to secure permits 30 days before posting advertising materials.
“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 competitive business environment,” the DTI said in a public advisory.
The agency withdrew the proposed regulatory policy following significant backlash and concerns raised by business groups, lawmakers, online sellers, and particularly micro, small, and medium enterprises (MSMEs).
Under the draft DAO, companies would have been required to apply for an advertising permit 30 days before posting materials and pay PHP975 per ad material. The fee would have been imposed on top of the 12 percent VAT already charged by platforms such as Facebook.
Sen. Bam Aquino also opposed the proposed DAO, warning that the pre-clearance requirement would add costs and cause delays for online businesses and MSMEs.
Aside from the 30-day clearance period, enterprises would also have been required to pay fees ranging from PHP975 to PHP9,295 per advertisement. Aquino noted that online sellers and small businesses rely on fast-moving digital marketing campaigns to remain competitive on e-commerce platforms.
