The Department of Trade and Industry (DTI) said it will no longer pursue plans to require mandatory permits for advertisements before they are made public, a move criticized for burdening online sellers and small companies.

In a public advisory, the DTI said it will not pursue, implement, or adopt a draft department administrative order (DAO) involving 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,” it said.

Based on the draft DAO, the DTI would require businesses to secure an advertisement permit (AP) at least 30 working days before the dissemination of advertising materials.

This would cover digital advertisements, sponsored posts, videos, billboards, radio spiels, and television commercials, among others.

The application for an AP would have to be filed for each advertising material, regardless of the number of brands or models involved, through the DTI One portal.

For moving advertisements, or those in video form shown online and on other platforms, the minimum application fee for an AP would be ₱1,860 for videos running between five and 30 seconds, which could go as high as ₱9,295 for those beyond five minutes.

For audio advertisements, the application fee would range from ₱975 to ₱4,650.

For static advertisements, which include sponsored posts and online promotions, the fee would be ₱975.

Senator Bam Aquino earlier issued a statement saying that the proposed policy would impose another burden on micro, small, and medium enterprises (MSMEs), which are already struggling with higher costs of essential inputs for their products.

He said the draft DAO, if enacted, would create an additional layer of bureaucracy that may discourage MSMEs and other online sellers from growing their businesses due to the additional costs involved.

Aquino added that the policy could be considered a form of prior restraint by requiring government permission before any commercial expression, which he said “may raise serious constitutional issues.”

The DTI has since said that the proposed pre-clearance regulatory regime will be voided in line with its commitment to help small businesses grow.

“We remain a committed partner in economic growth, ensuring consumer protection is balanced with innovation and competitive business environment,” the DTI said.