The Department of Trade and Industry, led by Sec. Gregorio Domingo, ruled that further studies should be held to craft rules and guidelines similar to the Consumer Act of the PH (Republic Act 7394) to bloggers holding contests, promotions, and initiatives that offer prizes to their readers. The discussion reached an agreement where, for the next three months. . .
- The DTI implements PHP1M/year** cap for cost-of-prize bloggers can offer the public.
- The DTI implements PHP200,000/year** cap for sponsored prizes bloggers can offer the public (This included discretionary giveaways companies give bloggers for their readers)
- The DTI will hold discussions, meetings with a Technical Working Group composed of bloggers and DTI representatives to create first draft of regulations and guidelines.
In context, these guidelines do not cover online businesses and businesses that hire bloggers to do contests for them – directly or indirectly. It also preclude entities that intend to generate income out of promotions.
RA 7394 requires businesses to register tactical initiatives that aims to generate more income and to protect consumers from shady or bogus contests. The said act was going to be applied to bloggers and require them to register all their promotions and pay fees like big companies do.
Sec. Domingo said his department will protect consumers from shady bloggers and organizations preying on unsuspecting online consumers who may be duped in joining promotions or contests that is not regulated. The blogging community in the Philippines is self-regulated by bloggers themselves.
**DTI is not equipped to monitor the cost of prizes bloggers offer their readers so they are asked to implement it lawfully.
This initiative to clarify points raised in RA 7394 is led by IMMAP.