The Department of Trade and Industry (DTI) has clarified that it will not pursue a proposed regulation requiring prior government approval for advertisements and promotional campaigns, following strong opposition from business groups who warned the measure would burden micro, small and medium enterprises (MSMEs).
DTI Statement on Proposed Advertising Regulation
In a statement released Saturday, May 23, 2026, the DTI said it is “not pursuing, implementing, or adopting” the drafted Department Administrative Order (DAO) that proposed a pre-clearance regulatory regime for 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,” the agency said.
Business Groups Voice Opposition
The clarification came after small business groups like Cebu-based Filipino-Cebuano Business Club Inc. (Filceb) opposed the proposed DTI regulation, warning it could hurt MSMEs and slow digital commerce. In a position paper, Filceb, an organization composed of more than 200 MSMEs largely made up of young startup entrepreneurs in Cebu, said the proposed DAO would create “unnecessary bureaucratic barriers” for entrepreneurs already grappling with rising operating costs, inflation and weak consumer spending.
The group said the proposal, which may require businesses to file applications and secure permits at least 30 working days before releasing advertisements, runs counter to the fast-paced nature of digital commerce. “In today’s digital economy, speed, flexibility and accessibility are essential for business survival,” Filceb said, adding that the requirement could undermine businesses that depend on platforms such as Facebook, TikTok, Instagram, Lazada and Shopee for affordable marketing and customer engagement.
Impact on MSMEs
Filceb chairman emeritus Rey Calooy said some members have already expressed concern over the proposed policy and are reconsidering or delaying planned online promotions and marketing campaigns due to uncertainty surrounding the rules. “Many small businesses rely on fast and affordable social media advertising to generate daily sales. Any delay, additional permit requirement, or added cost creates anxiety among MSMEs already struggling in today’s economy,” Calooy said.
He added that social media marketing has become essential to the survival of MSMEs, especially for startups and small enterprises with limited capital and resources. “Platforms like Facebook, TikTok, Lazada and Shopee are their primary and most affordable tools to reach customers, generate sales and compete in today’s digital economy,” Calooy said.
Disproportionate Burden on Small Enterprises
Filceb said the measure would disproportionately affect MSMEs, freelancers, home-based businesses, content creators and startups that lack the legal and financial resources of large corporations to absorb additional compliance costs and delays. The organization urged the government to suspend and review the proposal in consultation with affected sectors, saying policy efforts should instead focus on enforcing existing laws against fraudulent and deceptive advertisements. “We firmly believe that the future of economic growth in the Philippines depends on encouraging innovation, entrepreneurship, digital inclusion and ease of doing business — not the expansion of regulatory red tape,” the group said.
Senator Aquino Opposes Proposal
Sen. Bam Aquino separately voiced opposition to the proposal. He criticized the proposed DAO, saying it could impose another burden on MSMEs already coping with high fuel prices and elevated operating expenses. Under the draft DAO, businesses could have been required to secure permits before releasing digital ads, sponsored posts, videos, billboards and promotional campaigns.
Aquino, who authored and sponsored the Go Negosyo Act during his first Senate term, said the proposal could discourage entrepreneurship and hinder MSMEs, which account for the majority of jobs in the country. He also questioned the proposed fees ranging from P975 to P9,295 per advertisement, saying the added cost could heavily burden startups and online sellers.
The senator added that while consumer protection is important, regulations should be “targeted, practical and appropriate,” noting that existing laws under Republic Act 7394, or the Consumer Act of the Philippines, already regulate deceptive advertisements and sales promotions.
DTI Reaffirms Commitment to Business
DTI emphasized that it remains “a committed partner in economic growth,” adding that consumer protection should be balanced with innovation and a competitive business environment. The issue marks the latest debate over regulations affecting online enterprises. Last year, Aquino also opposed the DTI’s proposed mandatory “Trustmark” registration for online businesses, which the agency later deferred following industry pushback.
