The Department of Trade and Industry (DTI) withdrew a controversial proposal that would have required businesses to secure permits before releasing advertisements and promotional campaigns, following strong backlash from lawmakers and business groups.
The DTI clarified that the proposed Department Administrative Order (DAO) was merely an internal draft and would no longer be pursued or enforced.
“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 agency said.
The agency also removed the public consultation notice related to the draft rules after criticism mounted online and among entrepreneurs.
Senator Bam Aquino earlier slammed the proposal, warning that it would add another costly and burdensome layer of bureaucracy for micro, small, and medium enterprises (MSMEs), as well as online sellers heavily reliant on digital marketing.
Under the draft DAO, businesses would have been required to obtain permits at least 30 working days before launching advertisements or sales promotions across traditional and digital platforms, including sponsored social media posts, online videos, billboards, and other marketing materials.
The proposal also carried permit fees ranging from P975 to P9,295 per advertisement — costs Aquino said could disproportionately hurt startups and small businesses trying to remain competitive in the digital economy.
Aquino further raised constitutional concerns, arguing that existing laws already penalize deceptive advertising under the Consumer Act, while requiring prior government approval for ads could be viewed as a form of prior restraint.
The DTI said it remains committed to balancing consumer protection with innovation and a competitive business environment.
