E-Commerce in Switzerland: Legal Framework
E-commerce refers to the sale of goods or services via digital channels (website, mobile application, marketplace). In Switzerland, the legal obligations of online merchants are not grouped in a single law but result from a set of legislative texts. PBM Avocats advises companies active in e-commerce in Geneva and Lausanne.
Legal Framework for E-Commerce in Switzerland
| Domain | Applicable Law | Key Points |
|---|---|---|
| Online contracts | Code of Obligations (CO) | Formation of contract, confirmation, GTC |
| Data protection | FADP/LPD (revised 2023) | Privacy policy, cookies, consent |
| Commercial practices | UCA/LCD | Misleading advertising, abusive GTC, fraudulent reviews |
| Product safety | PrSA/LSPC + FMIA/LSEI | Obligation to ensure compliance of products sold |
| VAT on digital services | VAT Act/LTVA | Foreign service providers subject from CHF 100,000 |
Information Obligations of the Online Merchant
In Switzerland, online merchants are required to provide clear and accessible information on:
- Seller's identity: company name, legal form, IDE number, full address (not just a P.O. box)
- Contact details: email, telephone number, contact form
- Prices: total price (VAT included), delivery costs, additional taxes
- Product/service characteristics: detailed description, composition, guarantees
- General terms and conditions of sale (GTC): accessible before the order, including return and refund conditions
- Order procedure: clear steps up to purchase confirmation
- Privacy policy: compliant with FADP/LPD 2023
The FADP/LPD 2023 and E-Commerce
The revised Federal Act on Data Protection (FADP/LPD), in force since 1 September 2023, imposes new obligations on online merchants:
- Data protection declaration: merchants must inform customers of the collection and processing of their personal data
- Privacy by design and by default: data protection must be integrated from the design of the website
- Register of processing activities: mandatory for companies with more than 250 employees or that process sensitive data
- Notification of data breaches: obligation to notify the FDPIC of serious breaches
- Cookies: non-essential cookies require explicit consent (cookie banner)
Cross-Border Sales: When Foreign Law Applies
Swiss merchants who sell to European Union customers must also take into account EU law:
- Right of withdrawal (14 days): applicable to sales to EU consumers, even from Switzerland
- GDPR: applies if data of EU residents are processed
- Digital Services Act (DSA): applies to digital platforms targeting EU users
- EU VAT: Swiss e-merchants selling to private individuals in the EU may be subject to EU VAT (One Stop Shop/OSS)
E-Commerce Disputes: Alternative Dispute Resolution
- Online mediation: many platforms (Amazon, eBay, etc.) have internal mediation procedures
- Conciliation services: certain cantons offer conciliation services for small commercial disputes
- Simplified procedure (art. 243 et seq. CPC): for disputes up to CHF 30,000, simplified procedure before the civil court
- Specialist ombudsman: for disputes with telecommunications, insurance providers, etc.
Frequently Asked Questions About E-Commerce in Switzerland
Does Switzerland have a specific law on e-commerce?
Switzerland does not have a single law on e-commerce comparable to the European E-Commerce Directive. The obligations of online merchants result from a set of texts: the Code of Obligations (CO) for contracts, the Federal Act against Unfair Competition (UCA/LCD) for commercial practices, the Federal Act on Data Protection (FADP/LPD) for personal data, and sectoral ordinances.
Are online merchants subject to the right of withdrawal (right of return)?
Switzerland does not provide a generalised statutory right of withdrawal for online purchases, unlike the EU (14 days). Under Swiss law, such a right only arises from the CO in limited cases (doorstep selling: art. 40a et seq. CO). However, many merchants voluntarily offer a right of return for commercial reasons. If the e-merchant sells to European customers, they must comply with EU law applicable to EU consumers.
What mandatory information must be displayed on a Swiss e-commerce website?
Swiss e-commerce websites must display: the seller's full identity (company name, address), contact details, information on products/services (characteristics, price, delivery costs), general terms and conditions of sale (GTC), return and refund policy, information on data processing (FADP/LPD privacy policy), and accepted payment methods.
How to protect an online shop against fraudulent reviews (fake reviews)?
Commissioned fake positive reviews (astroturfing) and commissioned fake negative reviews against a competitor constitute acts of unfair competition under the UCA/LCD. Civil and criminal actions are possible. In practice, document evidence, identify authors via platforms, and act for cessation via UCA/LCD provisions against deceptive practices. A specialist lawyer can evaluate the options.
Are the general terms and conditions displayed on a website automatically valid?
No. To be valid, the general terms and conditions must be brought to the customer's attention before or at the time of concluding the contract, and the customer must have accepted them (checkbox, 'I accept' button). Surprising or unusual clauses that disadvantage the customer may be invalidated under the rule of unusual clauses (art. 8 UCA/LCD). Conditions hidden in a barely visible link may be contested.