MANILA, Philippines — Following a swift wave of public backlash and criticism from lawmakers, the government has pulled the plug on a highly controversial regulatory proposal targeting the digital economy.The Department of Trade and Industry (DTI) officially clarified that a leaked plan requiring permits for all commercial advertisements—including those published online—was merely an internal draft and will not be enforced.
The rapid withdrawal follows a social media firestorm and warnings that the measure would stifle digital innovation and cripple micro, small, and medium enterprises (MSMEs).
The controversy erupted earlier in the week when details of the draft Department Administrative Order (DAO) leaked online. The framework aimed to establish a strict pre-clearance regulatory regime, imposing significant bureaucratic hurdles on both traditional and online advertisers:
[ THE PROPOSED REGULATORY FLOW ] [ THE UNREALIZED BURDENS ]
• Detailed script and storyboard submissions. ───► Rigid Lead Times & Overhead:
• Printed layouts for static online graphics. • **30 working days** mandatory advance filing.
• Frame-by-frame breakdown for video ads/GIFs. • Mandatory "Per DTI Permit No." text on all live copy.
The DTI initially noted the proposal was intended to “strengthen the protection of consumers against false, deceptive, and misleading advertising practices.” However, the sheer scale of the submission requirements—including specifying camera directions, music tracks, and incidental sounds for LED or digital board materials—was quickly labeled as unworkable by the business community.
Beyond the logistical delays, the draft order sought to introduce a new tier of government administrative fees, scaling upwards based on the format and duration of the marketing material:
| Advertisement Category | Material Type / Scope | Proposed Base Fee |
| Static Materials | Digital banners, online product posts, and print media (any size) | ₱975 |
| Moving Materials | Brief video clips, promotional GIFs, and commercial end tags | ₱975 |
| Long-Form Media | Commercial video productions exceeding five minutes in length | ₱9,295 |
| Revisions / Edits | Amendments made to an existing or pending permit application | ₱300 |
The policy draft drew immediate condemnation from lawmakers, with Senator Bam Aquino IV taking a leading role in demanding its immediate retraction. Aquino warned that trapping small online sellers in a one-month waiting list for basic promotional posts would decimate local e-commerce, especially as businesses grapple with inflation and regional supply chain pressures:
[ ECONOMIC AND LEGISLATIVE IMPACT ]
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▼ ▼
[ BUREAUCRATIC STRANGULATION ] [ PIVOT TO ACTUAL ENFORCEMENT ]
• Aquino argued that online commerce moves too quickly to endure • Lawmakers urged the DTI to ditch the pre-clearance regime
a 30-day state processing delay for a single promo. and focus on tracking down actual fraudulent or deceptive ads.
“Sa panahon ngayon kung saan mabilis ang takbo ng negosyo, lalo na online, hindi dapat paghintayin ng isang buwan ang mga negosyante bago sila makapaglabas ng advertisement o promo… Instead of adding bureaucracy, the DTI should focus on deceptive and fraudulent advertisements while helping legitimate businesses recover, grow, and create jobs.” — Sen. Bam Aquino IV
Moving quickly to control the damage, the DTI wiped the initial proposal references from its official portals and issued a formal public advisory to stabilize market anxieties:
“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 a competitive business environment.”
By formally burying the administrative draft, the agency choice prevents what digital marketers feared would be a massive setback for the domestic creator economy. While consumer groups still urge stronger protections against online retail scams, the DTI’s quick retraction confirms that the state will look for alternatives to protect buyers without forcing casual online sellers and MSMEs through a slow, multi-tiered bureaucratic vetting process.
