The trustmark debate

In the bustling online marketplace of the Philippines, a new headwind is unfolding that strikes at the heart of small business survival.

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Many MSMEs, based on what we read on social media, are up in arms against the mandatory implementation of the Philippine Trustmark by DTI, enforced through a Department Administrative Order. A key issue raised is that the compulsory nature of the Trustmark contradicts the spirit of the Internet Transaction Act (RA 11967), which says it is voluntary.

The debate highlights the tension between consumer protection and ease of doing business in the fastgrowing Philippine digital economy. The DTI argues that the Trustmark will protect consumers from fraud and scams, which are rapidly becoming a significant problem in the online space, and build trust in e-commerce. But critics like Senator Bam Aquino and MSMEs counter that the costs and bureaucracy outweigh the benefits.

An online trustmark is a digital badge, symbol, or emblem displayed on an e-commerce website that signifies the business has been verified and deemed trustworthy by an issuing authority. It also provides a way to hold sellers accountable, thereby boosting consumer confidence in online shopping. In other jurisdictions, the trustmark also serves to reassure consumers that the business offers security in transactions and conforms with existing data privacy laws.

The debate has become a pivotal moment in shaping the future of ecommerce and entrepreneurship in the country. No local study has been done yet to back this up, but underground online selling has grown to become a primary micro business sector in the fast-growing Philippine digital economy. For many, it is not just about livelihood but a vital lifeline for survival.