Online selling has become a way of life. Consumers love the convenience of making online orders — even scrolling for hours on an e-commerce platform and simply clicking “Add to Cart.” This trend grew further during the pandemic, when Micro, Small, and Medium Enterprises (MSMEs) were in the spotlight in the digital marketplace.
But aside from the popularity comes the risks. Fraudulent sellers and scammers were everywhere, which led to the passing of the Internet Transactions Act of 2023 (R.A. 11967). The law tasked the Department of Trade and Industry with creating an E-commerce Bureau to monitor online business operations to ensure customer protection while giving more credibility to MSMEs by encouraging the making of Trustmarks.
What is a Trustmark?
As referred to by RA 11967, the purpose of a Trustmark is to assure safety and security in internet transactions. The law mandates that the DTI encourage its development. Also, as per DAO 25-07 on June 27, 2025, it was not meant to be a license or permit for an Online MSME to operate their online business with netizens, but rather as a symbol of compliance and trustworthiness of an online seller in the E-commerce platform.
How did the DAO 25-12 spark the issue?
On September 4, 2025, the DTI released DAO 25-12, an addendum requiring all online sellers to register and obtain a Trustmark. This was initially set to be complied with on or before September 30, 2025, but was later extended to December 31, 2025, after the opposition of the MSMEs.
This changes the game as it shifts from an encouragement to a legal obligation. The Trustmark, valid for one year upon registration, is now an additional regulatory requirement on top of the current permits and other fees and is viewed as an additional burden on business owners.
The Legal Tension: What does the Law speak?
With these conflicts, a legal inquiry arises, and a debate sharpens.
- DTI’s Legal Basis: Their recent issuance of DAO 25-12 pointed to Section 8(c) of the Internet Transactions Act, which empowers them to enforce the registration of digital platforms and online merchants with the Bureau. In their stand, requiring a Trustmark is part of ensuring proper registration and consumer protection, which is for the benefit of the general public. Meanwhile,
- MSMEs Counterpoint: They argue that, according to Section 11 of the same law, Registration with the Bureau is not the same as mandatory Trustmark registration. The law explicitly states that DTI shall encourage the development of a Trustmark, not compel it. Turning a voluntary act into mandatory could be seen as going beyond what the Legislators intended.
This raises the question of whether DAO 25-12 represents a truthful implementation of the law or an unnecessary expansion of power that may be challenged as an “ultra vires” (beyond authority) or even deemed as a grave abuse of discretion.
What’s at Stake for MSMEs?
For small businesses, every peso counts, and maybe they only earn to make ends meet. While a Trustmark may strengthen consumer confidence and benefit the general public, its mandatory implementation adds compliance costs and administrative work, which may be burdensome for some business owners. Instead of encouraging digital growth, it may discourage micro-entrepreneurs from participating in the online marketplace or E-commerce platforms.
Moving Forward
At this point, the trustmark remains a questionable option. MSMEs, consumers, and regulatory agencies want the same thing — safer online or internet transactions, but the path to achieving it must be fair and considered.
If the legality of DAO 2025-12 is tested, only our courts can decide whether the Trustmark is a necessity or a costly barrier for the MSMEs.
At Babylon2k, we are willing to help MSMEs navigate this new compliance order. Whether it’s understanding the requirements, aligning your digital presence with the standards, or finding cost-effective ways to comply, our team is ready to guide you. Regulations will always evolve, but with the proper support, MSMEs can turn compliance from a burden into an opportunity to strengthen their credibility and consumer trust. For assistance, you can reach out via Viber or WhatsApp at +63-927-945-3382, email us at [email protected], or explore our consultation services here, and if you’re looking for a tailored quote, you may click this link
The incoming months will determine whether the Trustmark becomes a useful tool for the platform or will just become a hurdle for growth.
