The Department of Trade and Industry (DTI) is looking to extend the deadline of the registration for the digital verification system in e-commerce from Sept. 30 to the end of the year, as the agency ramps up promotion efforts for the now-mandated requirement for all merchants and platforms.

The DTI’s plan to extend the registration period for the E-Commerce Philippine Trustmark to Dec. 31 comes amid low registration and growing concerns from online sellers about the additional cost.

The trustmark serves as a digital badge issued to online platforms and merchants that comply with fair e-commerce practices.

It is designed to help consumers identify legitimate online merchants, safeguarding them from unfair trade practices and threats of scams and other fraudulent activities.

Based on the DTI’s latest figures, there are over 10,000 pending registrations from online merchants, e-retailers, and digital platforms.

For micro, small, and medium enterprises (MSMEs) alone, which account for 99 percent of all businesses in the country, the DTI is expecting approximately 500,000 registrants for the sector.

“We really encourage everyone to get the trustmark because after a while, our consumers will look for a trustmark,” said Trade Secretary Cristina Roque in a press briefing on Friday, Sept. 19.

“I'm sure even us, when we buy the same item, one has a trustmark and the other doesn't. It is to the advantage of the person who has the trustmark to get the sale,” she added.

As embodied under Department Administrative Order (DAO) No. 25-12, the DTI elevated the classification of the trustmark from voluntary to a mandatory permit.

Roque reiterated that the pivot to making it mandatory is a direct response to the surge in consumer concerns on online platforms. DTI data showed that over 13,000 complaints related to online transactions were logged from January to August.

Based on the order, the trustmark is meant to ensure that the merchant or platform is permitted to “use the internet for conducting e-commerce.”

Essentially, without the digital badge, selling online is not authorized.

Such a requirement only covers business-to-consumer (B2C) and business-to-business (B2B).

Under DAO No. 25-12, those who have submitted an application on or before the scheduled deadline must clearly state on their page that their trustmark is still pending evaluation and approval.

Trade Assistant Secretary Marcus Valdez said missing the deadline means that an online business will be immediately classified as illegal.

Valdez said the DTI will coordinate with the National Telecommunications Commission (NTC) and the Department of Information and Communications Technology (DITC), through the Cybercrime Investigation and Coordination Center (CICC), to take down the online platform or merchant.

“We will be strict on this because we really want to control the sale of substandard products,” said Roque.

To apply for the trustmark, interested applicants must submit an application form with a sworn undertaking to comply with all applicable laws, rules, and regulations.

Applications will be submitted through the E-Commerce Philippine Trustmark’s digital platform, and will have a registration fee amounting to ₱1,130.

The additional costs have been fueling complaints against the DTI, with merchants pointing to the trustmark as another burden, especially for smalltime business owners.

Roque has since clarified that barangay micro business enterprises (BMSEs), or those with assets of less than ₱3 million, will be exempted from the application fee of ₱1,000. BMSEs will only have to pay the ₱130, which covers the web admin fee and documentary stamp tax.

Nonetheless, Roque said that the DTI will study the prospect of lowering the fee.

She has also instructed the agency to look into extending the validity period of the trustmark, currently valid for one year from the date of issuance.