The Department of Trade and Industry (DTI) is offering discounts to micro and small businesses applying for the mandated E-Commerce Philippine Trustmark, amid complaints from online merchants about the additional burden.

The DTI reiterated on Monday, Sept. 22, that micro businesses, or those with total assets of less than ₱3 million, will be exempt from the ₱1,000 application fee.

These businesses will only have to pay ₱100 for the web administration fee and ₱30 for the documentary stamp.

The DTI said this only applies to microenterprises that are duly registered with the agency.

Meanwhile, small businesses with assets of more than ₱3 million and less than ₱15 million will be given a 50 percent discount on the application fee. The other fees will remain as is.

Small enterprises will only pay ₱630 as a result of the discount.

Medium enterprises, which the DTI refers to as businesses with assets of over ₱15 million, are required to pay the full fee for their trustmark application.

Under this category and beyond, businesses will pay a total of ₱1,130.

The trustmark is valid for one year from the date of issuance, with an annual renewal fee of ₱1,000. The validity period is under study for potential extension.

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 businesses to protect them against unfair trade practices, scams, and other fraudulent activities.

Based on Department Administrative Order (DAO) No. 25-12, the DTI changed the classification of the trustmark from a voluntary option to a mandatory requirement.

This mandate covers all online merchants, e-retailers, and digital platforms. Currently exempt are those engaged in selling under Facebook Marketplace, as their business model is purely customer-to-customer (C2C).

The DTI attributed the mandate of the new requirement to the surge in consumer complaints, which soared to over 13,000 by the end of August.

Similarly, complaints have also been raised against the DTI for requiring the trustmark, with merchants labeling it as an additional burden.

The DTI has since disabled the comment feature on its Facebook page after being bombarded with criticisms on every post, even those unrelated to the trustmark.

Trade Secretary Cristina Roque last week defended the implementation of the trustmark, noting that those with the badge will have a competitive edge over other merchants.

Under DAO No. 25-12, the DTI said the fees shall be used for the “administrative maintenance of the online facility, cost of service, and incidental expenses for the effective implementation of the implementing rules and regulations of the trustmark.”

The DTI earlier extended the registration period for the trustmark to Dec. 31 from an initial Sept. 30 deadline in an effort to “accommodate more businesses.”

The agency said last week that there are over 10,000 pending registrations.

For the micro, small, and medium enterprises (MSMEs) sector alone, it is expected to have approximately 500,000 registrants. MSMEs account for 99 percent of all businesses in the Philippines.