DTI drops plan for online business ad permits amid backlash

The Department of Trade and Industry has retracted its plan to require permits for online ads following backlash.

In a statement posted on Facebook, the DTI on Saturday said that it is "not pursuing, implementing, or adopting the drafted Department Administrative Order concerning a pre-clearance regulatory regime for advertising materials."

The said DAO requires businesses to submit applications at least 30 working days before launching any promotional campaigns and pay up to P9,295 in fees. This applies across both traditional and digital media, including sponsored posts, videos, billboards, and online ads.

"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," the statement continued.

"We remain a committed partner in economic growth, ensuring consumer protection is balanced with innovation and competitive business environment," the statement ended.

Senator Bam Aquino previously expressed concern regarding the proposal.

"Hindi pa nga nakakabangon ang ating maliliit na negosyo sa epekto ng krisis sa langis at mataas na gastusin, papatawan na naman sila ng panibagong pasanin," he wrote in a statement. "Dagdag-pahirap ito para sa MSMEs at online sellers."

He believes it is unfair to burden small business owners with extra fees and longer processing times just to run ads or promotions.

"Mahalaga ang consumer protection, pero dapat praktikal, makatwiean, at naaayon sa tunay na kalagayan ng ating mga negosyo," he said, suggesting that they should focus more on cracking down on fraudulent and fake advertisements, while supporting legitimate businesses.

Internet personality and tech entrepreneur Carlo Ople also voiced his opinions, saying that this "will be a massive burden to small businesses, start ups, and online sellers."

"This will cripple the growth of the industry. This will set the digital economy of the Philippines back by years, possibly decades. It's better do do business elsewhere if this passes. This is just stupid on all levels," he said.

The DTI has since deleted its original post.