Switzerland is a democratic country with a liberal and free market economy. It has the world's twentieth largest economy by nominal gross domestic product (GDP).

Significant industries include manufacturing (specialty chemicals, pharmaceuticals, medical devices, high tech and precision products, machinery, electronics) and services (financial services, insurance, tourism and international organisations).

The population of Switzerland amounts to approximately 8.6 million. Switzerland has four national languages: German, French, Italian and Romansh.

Switzerland's business culture is formal and conservative. Punctuality, efficiency and politeness are important. Business etiquette takes the form of greeting with a firm handshake and eye contact. The Swiss are direct and polite in communication. Asking personal questions is uncommon. Business attire should be formal. Gifts are not common in a business context.

Business hours are normally Monday to Friday from 08.00 to 18.30. The national average of work time is 41.5 hours per week.

The Cantons can set their public holidays independently, with the exception of 1 August, which is a federal holiday and the National Day of Switzerland at the same time. Additionally, holidays can vary from village to village and from employer to employer. The list of bank holidays for a specific area is the most reliable source of information.

While the Swiss economy has been quite strong over the past years, it was hit by the Covid pandemic as other countries in most other parts of the world. Certain sectors have been hit particularly hard, such as international tourism, hospitality, events and trade fairs, but also the watch industry. In contrast, other sectors, such as pharmaceuticals or financial services, seemed to sail through the crisis unscathed.

The last general elections at a Federal level in 2019 did not bring about any major changes to the current political environment, which is based on a pluralist system including a number of political parties. The strongest political party is the national conservative party (SVP) with 29.4% of the vote, followed by the social democrats (SP) with 18.8%, and the liberals (FDP) with 16.4%.

Switzerland has been in economic and political terms a very stable country with a sophisticated and well-developed legal system for many years. More recently, a corporate tax reform was carried out addressing new international standards and the banking sector was affected by the pressure put on banking confidentiality by foreign governments.

Some noteworthy recent legislative projects include a law on distributed ledger technologies, a major reform of the Swiss Corporate Law (expected to come into force in 2023) as well as new provisions of the Swiss Cartel Act, which extend the prohibition of abuse of dominance to companies with relative market power.

Switzerland has a statute-based civil law system. The law-making powers are reserved to the 26 cantons unless expressly delegated to the federal authorities (Federal Constitution).

Major legislative powers are federal, including:

Authorisation to invest may be required in certain regulated areas such as:

Apart from these industries, there are no restrictions on foreign shareholders.

Switzerland maintains on its own initiative, and through participation in international measures, sanctions and embargoes against other countries, individuals, businesses and other organisations. Official information on these measures is available at www.seco.admin.ch.

There are certain export restrictions on particular goods such as war materials.

Other than taxes, there are no controls on inward investment or the repatriation of profits and capital on disinvestments.

Incentives aimed exclusively at foreign investors are provided at a cantonal rather than federal level. Presently, the only significant incentives are tax holidays for up to ten years.

The most commonly used business vehicle in Switzerland is the share corporation (AG or SA), followed by the limited liability company (Gmbh or Sàrl). They both provide a flexible governance structure. Other forms available to conduct business include co-operatives and partnerships. Trusts are not available, but foundations can serve similar purposes.

All internationally known business vehicles are available in Switzerland, including share corporations, limited liability companies, co-operatives, partnerships and joint ventures. Trusts are not available, but foundations can serve similar purposes.

The most common form of business vehicle used by foreign companies is a share corporation. The legal regime for a share corporation, including corporate governance, is well developed. However, limited liability companies are increasingly common as they are more flexible and because the "check-the-box" (entity classification election) rules apply to US parent companies.

An application must be submitted to the Commercial Register at the registered office of the company containing all of the following:

The registration process takes one to two weeks.

The federal commercial register provides general information on all registered legal entities. It is accessible at www.zefix.ch.

Commercial registers are cantonal and their websites regularly provide guidance on the registration process, for example for the Canton of Zurich in English at www.hra.zh.ch/internet/justiz_inneres/hra/en/home.html.

The board must submit a business report at the annual shareholders' meeting, which includes:

Bookkeeping fees are CHF2,000 a year and auditors' fees are between CHF2,000 and CHF4,000 a year. For smaller companies, an audit is not mandatory.

A tax return must be filed for each business year. Special reporting requirements exist for regulated companies. There is no requirement to file the financial accounts with the company register.

A share corporation must have a minimum capital of CHF100,000, of which CHF50,000 must be paid up in cash or in kind. There is no maximum amount, but at least 20% must be paid up.

Payment in kind is permissible provided that both:

The same conditions apply to cash incorporation if the cash is used shortly afterwards to purchase assets from shareholders or third parties.

Restrictions on rights attaching to shares. The articles can provide for restrictions on the transfer of shares. At the same time as passing a resolution to increase share capital, shareholders can withdraw pre-emption rights for valid reasons (such as the takeover of the whole or part of an enterprise).

Automatic rights attaching to shares. The following rights are automatically attached to shares:

The board must have at least one member. The board can delegate corporate duties and powers to individual directors or third parties. However, the following duties cannot be delegated or taken away from the board by the shareholders:

There are no restrictions on foreign managers. However, one person (or, in the case of collective signature, two persons) entitled to represent the company must be resident in Switzerland.

Directors and officers are personally responsible to the company, individual shareholders and the companies' creditors for damages caused intentionally or negligently by default of their duties.

A parent company is not liable for the debts of its subsidiaries unless it has given a guarantee or qualifies as a shadow director.

There is no comprehensive overall codification of Swiss environmental laws. A number of federal laws and ordinances define both the objectives of environmental protection as well as the instruments and measures in place to achieve them. The provisions relevant to a specific matter must be determined on a case-by-case basis.

The cantons are essentially responsible for implementing set goals. For this purpose, the cantons can issue supplementary laws and ordinances.

On the federal level, the main environmental topics are governed by the following environmental regulations:

The list above is not exhaustive. Depending on the specific business activities, other special provisions on environmental matters may apply, for example, on chemicals.

Certain environmental principles are primarily programmatic and addressed to the legislator (for example, the principle of sustainability and the principle of precaution). In contrast, the "polluter pays" principle is directly relevant for businesses and individuals, serving as a cost allocation rule. The costs incurred to remedy environmental pollution or damage should not be paid by the general public, but by those who caused them. Those who pollute or damage the environment must pay to remediate the pollution or damage. This applies to polluted sites, such as industrial sites or landfills. The "polluter pays" principle is also an important instrument for indirect behavior control and to incentivise environmentally-friendly behaviour.

Finally, doing business often requires purchasing or renting real property. When doing so, particular attention must be paid not only to soil pollution, but also to building pollutants and environmentally-friendly building substances.

See below, Mandatory Rules of Law.

See below, Mandatory Rules of Law.

Employment relationships are regulated by collective bargaining agreements (if any) and the provisions of the Swiss Code of Obligations on employment contracts and the Labour Act.

Employees can bring actions in the Swiss courts if either the:

Conflict of law provisions limit the choice of law for employment contracts to laws of the jurisdiction where either:

These laws apply to both foreign employees working in Switzerland and Swiss employees working abroad if foreign laws allow for a choice of law in the employment agreement. The choice of foreign law is not enforceable if it is seen to violate Swiss public order. For example, if there are very binding provisions of foreign law or punitive damages available for violations of contractual duties.

Contracts do not need to be in writing unless they either:

If the contract is concluded orally only, the employer must, within 30 days of the commencement date, inform the employee in writing of the:

Provided that mandatory Swiss employment law provisions are adhered to, the following employment issues are likely to be governed by the employment agreement:

In the absence of a written agreement, the statutory rules on employment contracts will apply. These rules deal with the applicable notice period, overtime, vacation, sick pay, and so on. Implied terms may apply through regular practice when performing the agreement.

In certain industries, generally applicable collective bargaining agreements apply which may provide for minimum salaries, maximum working time and similar arrangements. Other collective agreements only apply where the employer becomes part of a specific industry association such as Swissmem or similar. Some cantons have adopted minimum salaries that all employers must adhere to.

Whether a work permit is required depends on the county of origin of the worker. See below, EU Member States and EFTA Nationals and Other Foreign Nationals.

Whether a residency permit is required depends on the county of origin of the worker. See below, EU Member States and EFTA Nationals and Other Foreign Nationals.

Citizens from the following do not need to apply for a work and residency permit if they intend to work for less than three months in Switzerland:

A registration procedure applies. If working for more than three months, they must apply for a work and residency permit but are automatically entitled to it under the Agreement on the Free Movement of Persons EU-Switzerland (see below, Other foreign nationals).

Different permits are required depending on the term of employment:

Costs are imposed on an incremental basis.

Employees from Croatia, as well as employees from non-EU and non-EFTA states, must apply in advance for a work and residency permit if they intend to work or provide services for more than eight days in the calendar year in Switzerland.

The Agreement on the Free Movement of Persons was extended to Croatia on 1 January 2017. Separate quotas continue to apply for a transition period until 1 January 2024 and search activities must be demonstrated and salary levels must correspond to market levels.

Work permits for non-EU nationals are subject to general quotas that apply to all non-EU states, and the employer must demonstrate that they have searched for potential employees in Switzerland and the EU, that the prospective employee is highly qualified, and that employment terms and conditions comply with Swiss standards. The quotas are opened on a quarterly basis and awarded on the principle of first come, first served. Some facilitation provisions exist for intra-group transfers.

The application procedure for non-EU nationals takes approximately six to eight weeks. The administrative costs for obtaining permits differ depending on the permit type, although they are generally around CHF500.

Businesses with more than 50 employees must elect a works council if requested to do so by 20% or more of the employees, and if the majority votes in favour of having a works council. The works council has participation rights in matters such as:

Employment contracts can be terminated either:

A contract can be fairly terminated on notice and the length on the notice depends on the length of employment. The statutory rules provide for one month's notice in the first year, two months' notice from the second to the ninth year of service and after that, for three months' notice. The parties can deviate from the statutory order by written agreement setting a fixed notice period throughout the term but in no event less than one month.

Payment in lieu of notice is only available through the conclusion of a mutual termination agreement; otherwise the concept of payment in lieu does not exist under Swiss Law.

If an employee is dismissed without notice and without a valid reason, the employer must compensate them with both:

A dismissal notice is automatically void if it is given during a mandatory protection period (for example, if an employee is incapacitated from work, or on maternity leave).

If an employer provides an abusive notice of dismissal, the employee is entitled to compensation of up to six months' wages. A dismissal is considered abusive if the employee is dismissed for reasons such as:

The law protects women from termination during pregnancy and for 16 weeks after childbirth. In addition, employees incapacitated from work cannot be dismissed for a certain protection period that depend on the years or service (30 days in the first year, 90 days in second to the fifth year of service and 180 days after that).

See below, Procedural Requirements.

Mass layoffs can only be carried out after prior consultation with the employees or the works council (if any) and in collaboration with the competent labour authorities. Mass layoffs are defined as the dismissal of:

In companies with more than 250 employees and where at least 30 of the employees will have their employment terminated, the employer is under a duty to negotiate a social plan.

An employee can, in certain cases, receive a redundancy payment (severance pay) if they both:

Entitlement to a redundancy payment also depends on what has been negotiated between the employer and employee. Other redundancy and severance payments are not specifically regulated.

An employee becomes tax resident and subject to unlimited taxation if s/he is either:

An employee becomes subject to limited taxation if s/he is either:

Not applicable.

Tax resident employees must pay:

Non-tax residents must pay:

Exemptions can apply based on a double taxation treaty or a social security agreement between Switzerland and the employee's state of residence (see Question 27).

Employers must make contributions to the following:

Legal entities are considered to be tax resident if they either:

Tax non-resident companies are subject to taxation only on income from qualifying Swiss sources, such as a permanent establishment or real property in Switzerland. In addition, any brokerage in Swiss real property and the ownership of interest-bearing receivables, if owed by a Swiss debtor and secured with Swiss real property, can be subject to limited tax liability.

Profit tax is levied on net profit, not including profit attributed to a permanent establishment or real estate abroad. The federal tax rate is 7.83% of profits before tax. Cantonal rates vary and are often flat. The maximum effective (federal and cantonal) tax burden varies between around 11.7% and 22% of profits before taxes.

Dividends and capital gains derived from qualifying participations are tax exempt under a participation relief scheme (see Question 22). A tax return must be filed for each business year.

There is no separate federal capital gains tax for companies. However, some cantons levy a special capital gains tax on the sale of real estate, rather than the cantonal profit tax. Tax rates are progressive and depend on the holding period. Non-real estate capital gains are part of ordinary income and are taxed accordingly (see above, Profit tax).

This cantonal tax is levied on a company's tax-adjusted net equity at the end of the accounting year. Rates vary from about 0.001% to 0.53%.

A 35% withholding tax is levied on:

No tax is withheld on arm's length royalties or arm's length interest from inter-company loans (unless the loans are re-characterised as bonds or bank deposits).

The tax accrues on a quarterly basis for interest on deposits, and instruments similar to deposits with banks. It must be paid and declared within 30 days.

Stamp duty is levied on:

The tax must be declared and paid within 30 days after the taxable event or on a quarterly basis.

VAT is levied at federal level on any:

The standard tax rate is 7.7%. However, a special rate of 3.7% applies to the hotel and lodging industry, and a reduced rate of 2.5% applies to certain other goods and services, such as water, food or medication.

In general, VAT must be declared and paid quarterly or, in specific cases, monthly, twice-yearly or yearly.

These are subject to a 35% withholding tax, which can be fully or partly refunded (or treaty relief at source may apply) under a double taxation treaty (see Question 27).

These are taxed as ordinary income of the recipient Swiss company. A participation relief mechanism (generally of 100%) applies if the recipient holds either:

A withholding tax of 35% is levied on interest from the following:

No withholding tax is payable on (arm's length) IP royalties.

Thin capitalisation is calculated on the asset base. No fixed debt-to-equity ratio applies, but the minimum debt-to-equity ratio depends on the kind of assets held by the company. If the tax authorities consider a company to be thinly capitalised:

The federal tax authorities have issued a circular with guidelines (Circular No. 6 of 6 June 1997).

Switzerland has no controlled foreign company rules. Cross-border structures can be challenged under the arm's length principle or tax residency status.

Switzerland does not have express statutory transfer pricing rules (but for a few principle-based rules, in essence emphasising the arm's length principle in general). Switzerland is a member of the Organisation for Economic Co-operation and Development (OECD) and generally follows the OECD principles. Supplies and charges among related parties must be at arm's length. Special guidelines (safe harbour rules) apply concerning minimum and maximum interest rates on loans granted to or from related parties.

Exports are exempt from Swiss VAT. Imports are subject to import VAT (see Value added tax (VAT)). Customs duties may also be levied.

Switzerland has double tax treaties and tax information exchange agreements with more than 100 countries, including all OECD and EU countries, as well as, for example, China, Hong Kong, India, Indonesia, Israel, Kuwait, Malaysia, Russia, Singapore, South Africa and South Korea. The Swiss Government is working on expanding the treaty network further.

The Swiss Competition Commission (ComCo) is the Swiss competition authority. The ComCo's investigative body is the Secretariat of the Swiss Competition Commission. It investigates suspected infringements of the competition laws and prepares decisions for submission to the ComCo.

The ComCo's website is www.weko.admin.ch. The website contains general information on competition law rules and the authority. It also contains links to the relevant acts and regulations.

Agreements are unlawful if they restrict competition in a market for certain goods and services and cannot be justified on economic efficiency grounds. Agreements eliminating competition altogether are never justified. The following are presumed to eliminate competition:

Unlawful agreements that fall under these categories can be sanctioned with administrative fines of up to 10% of the party's previous three years' cumulative turnover in Switzerland. This applies to practices that have an effect in Switzerland, even if they originate in another country.

Unilateral practices that abuse a dominant position and prevent or hinder competitors are prohibited. Practices are considered abusive if they cannot be justified by legitimate business reasons.

Abuse of a dominant position can be sanctioned with administrative fines of up to 10% of the party's previous three years' cumulative turnover in Switzerland. This applies to practices that have an effect in Switzerland, even if they originate in another country (see below).

New provisions introducing the concept of relative market power to the Swiss Cartel Act will come into force in the course of 2021. The prohibition against abuse of dominance will be extended to companies with relative market power. If companies on which other companies depend abuse this position, it will fall under the Cartel Act. Such companies can no longer abuse their position vis à vis companies depending on them. Additionally, a new type of abuse is introduced, which provides Swiss companies with a right of purchase abroad at the prices and conditions applicable there. Moreover, an explicit ban on geo-blocking will be enshrined in the Unfair Competition Act.

The Swiss Act on Cartels applies to all agreements or actions that have an effect in Switzerland (effects doctrine). Agreements made or actions occurring abroad can still be relevant under the Act on Cartels. For example, restrictions regarding the sale of products or provision of services into Switzerland in resale agreements outside of Switzerland (particularly in the EEA but also in the US) are within the scope of the Act on Cartels.

A concentration (takeover, merger or formation of a joint venture) by two or more undertakings is subject to merger control if both of the following apply:

In addition, every concentration that involves an undertaking that has previously been found to hold a dominant position in a certain market is subject to merger control, if the concentration relates to that market or a related market.

A concentration that is subject to merger control must be notified to the Swiss Competition Commission and is subject to a mandatory waiting period. Closing without notification or prior to clearance is subject to fines. The Competition Commission can exceptionally authorise implementation of the concentration prior to clearance only on request from the parties, for good cause.

COMCO will prohibit a concentration if or authorise it subject to conditions and obligations if the investigation indicates that the concentration:

Key elements of the substantive test are the definition of the relevant market and what effect the concentration has on the position of the undertakings in question. The assessment of the effect of the concentration involves, among others, market shares, actual and potential competition as well as financial strength.

Foreign-to-foreign acquisitions are also subject to merger control if the above thresholds are met. In practice, there is an exception for foreign joint ventures that have no activities in Switzerland and if no Swiss activities (in particular, no sales into Switzerland) are planned or expected in the future.

A concentration (takeover, merger or formation of a joint venture) by two or more undertakings is subject to merger control if both of the following apply:

In addition, every concentration that involves an undertaking that has previously been found to hold a dominant position in a certain market is subject to merger control, if the concentration relates to that market or a related market.

Foreign-to-foreign acquisitions are also subject to merger control if the above thresholds are met. In practice, there is an exception for foreign joint ventures that have no activities in Switzerland and if no Swiss activities (in particular, no sales into Switzerland) are planned or expected in the future.

A concentration that is subject to merger control must be notified to the Swiss Competition Commission and is subject to a mandatory waiting period. Closing without notification or prior to clearance is subject to fines.

There are no industry-specific merger control rules.

Anti-Bribery is primarily based on the Swiss Criminal Code. Both public and private bribery are criminal offences for which individuals are liable to a custodial sentence up to five years, or to a monetary penalty.

Active public/private bribery consists of promising or giving a Swiss or foreign public agent/private individual an undue advantage to cause them to carry out (or to fail to carry out) an act in connection with his/her official activity which is contrary to his/her duty or dependent on his/her discretion. Passive public/private bribery consists of demanding, securing the promise of or accepting an undue advantage for the same goal. The existence of damage resulting from the act of bribery is not a condition of the offence.

As far as Swiss public agents are concerned, the mere grant/acceptance of an undue advantage so that a public agent carries out its official duties is also punishable.

The notion of public agent is quite broad. It includes not only public officials at any level of the Swiss federal system, but also, for example, employees/managers/directors of an entirely or partly state-owned company, officially-appointed experts or interpreters and arbitrators.

The notion of undue advantage encompass any undue advantage with a financial value, to the sole exception of the following:

The intention of the perpetrator is always required. Intention is accepted as soon as the person realises there may be a criminal act and accepts it.

Corporates can be held criminally liable for active public or private bribery, irrespective of the criminal liability of any individual, if they fail to take all the reasonable organisational measures that are required to prevent an offence committed in the exercise of their commercial activities in accordance with their objects. The maximum sanction is a fine up to CHF5 million.

Advantages under the Bribery Act that are received by the both the corruptee and the corruptor can be confiscated. If the advantages (or their replacement value) are no longer available, an equivalent claim can be brought against the corruptee and/or the corruptor for amounts corresponding to the value of the advantages. To protect against confiscation, or an equivalent claim, the corruptee/corruptor's assets can be seized by the criminal authorities.

In addition to criminal liability, bribery and similar offences can also trigger for both individuals and corporates:

Definition and legal requirements. An invention or process can be patented if it is both:

A patent is not granted if the invention or process:

The right holder has the exclusive right to use, execute, offer for sale, sell, circulate and import the patented product.

Registration. Applications for domestic patent registration are filed with the Federal Institute of Intellectual Property (FIIP). The FIIP's website provides information on the application procedure for registration of intellectual property rights in English at www.ige.ch/en/patents/protection-in-switzerland.html.

Enforcement and remedies. Patent infringers can be prosecuted through both civil and criminal proceedings. Criminal penalties include a custodial sentence not exceeding one year or a monetary fine (the maximum fine is 360 times the daily rate of CHF3,000). The calculation is at the discretion of the competent authorities based on the default and economic means of the infringer. Criminal penalties can apply to natural persons and legal entities.

Length of protection. Protection lasts for 20 years from the date of filing. This period is not renewable.

Definition and legal requirements. The following can be registered as a trade mark provided they distinguish, or identify a source of, goods or services:

The right holder has the exclusive right to identify the goods or services for which it is registered and to use, offer for sale, sell, circulate and import the trade mark.

Protection. Applications for national registration must be filed with the FIIP.

Enforcement and remedies. This is the same as for patents (see above, Patents).

Length of protection and renewability. Protection lasts for an initial period of ten years from the date of filing and can be renewed for further ten-year periods.

Cancellation proceedings. Any person can file a request for the cancellation of a trade mark on the grounds of non-use for an uninterrupted period of five years. Administrative proceedings for cancellation of trade marks not in use were recently introduced.

Definition. To be registered, a design must be both:

The right holder has the exclusive right to use, offer for sale, sell, circulate and import the design.

Registration. An application for registration must be filed with the FIIP.

Enforcement and remedies. This is the same as for patents (see above, Patents).

Length of protection and renewability. Protection lasts for 25 years from the date of filing. This period is not renewable.

Definition and legal requirements. An unregistered design and shape will be any shape or form that does not fulfil the requirements of registered designs (see above, Registered designs). There is no specific protection under Swiss law for unregistered designs, however, protection can be sought under the Act against Unfair Competition (see below, Enforcement and remedies).

Enforcement and remedies. The first user of the respective unregistered design or shape can claim under the Act against Unfair Competition. Infringers of the unregistered design can be prosecuted through both civil and penal proceedings based on the provisions in the Act against Unfair Competition.

Length of protection. Not applicable.

Definition and legal requirements. Literary, artistic and scientific works (including computer software) have copyright protection provided they:

The right holder has the exclusive right to be recognised as the author of the work, produce, reproduce, offer for sale, recite, perform, broadcast and re-broadcast the works.

Protection. Protection arises automatically on creation of the work.

Enforcement and remedies. This is the same as for patents (see above, Patents).

Length of protection and renewability. Protection lasts for the life of the author, plus:

Not applicable.

Commercial agency agreements are governed by the Swiss Code of Obligations (CO), which contains a number of mandatory provisions, including:

An agent must safeguard the interests of its principal and has a duty of secrecy. On termination of an agreement, an agent is entitled to fair clientele compensation if the principal substantially benefits, even after termination, from the business relations established with the acquired clientele.

There is no specific regulation on distribution.

There is no specific regulation on franchising.

The provisions relevant to e-commerce are primarily included in the Swiss Code of Obligations and the Federal Act against Unfair Competition (UCA), which applies to both business-to-business and business-to-consumer settings.

Whoever offers goods, works, or services through electronic commerce (for example, through an online shop) must:

(Article 3, paragraph 1 lit, UCA.)

As an exception, these requirements do not apply to voice telephone and to contracts that are entered into exclusively through an exchange of electronic post (e-mail) or comparable individual communications (Article 3, paragraph 2, UCA).

Beyond this, however, Switzerland has no specific e-commerce law and distance selling legal provisions do not apply to online sales. Electronic signatures are equivalent to an autographic signature if based on a qualified certificate of an authorised provider of a certification service.

Switzerland does not have a specific law regulating online platforms. Online platforms are subject to the general provisions applicable to e-commerce, in particular the Federal Act against Unfair Competition and the Federal Telecommunications Act.

Switzerland has no specific law on advertising.

Provisions relevant to advertising can be found in various acts and ordinances, for example, the:

Specific advertising rules exist for regulated products, such as pharmaceutical and medical products, alcohol and tobacco. In addition, there is the Swiss Fairness Commission, which monitors fair commercial communication for the purpose of advertising self-regulation. Anyone is entitled to file a complaint with the Swiss Fairness Commission against any kind of unfair commercial communication.

In connection with influencer marketing, particular attention must be paid to the Act against Unfair Competition, the principles of fairness in commercial communication of the Swiss Fairness Commission, and the social media platform-specific guidelines.

There is no specific federal legislation governing sales promotions. However, the prohibition against misleading statements in the Act against Unfair Competition and the Ordinance on the Use of Prices set limits, notably regarding price fixing. In addition, there are federal and cantonal legal regulations that may apply to specific industries (for example, pharmaceuticals, tobacco or the distribution of alcohol).

In accordance with the Federal Gambling Act, money games are subject to state permission, provided they are linked to the payment of a monetary stake or the conclusion of a legal transaction. However, sales promotions are exempt from the Federal Gambling Act where there is no risk of excessive gambling and participation is exclusively through the purchase of goods offered at prices that are at most in line with the market. Equally, lotteries and games of skill conducted by media companies for a short period of time to promote sales are also not subject to the Federal Gambling Act, as long as there is no risk of excessive gambling and participation is free of charge under the same conditions of access and participation as when a monetary stake is placed or a legal transaction is concluded. However, the Act against Unfair Competition must be complied with, which prohibits, for example, offering a prize in a competition that can only be redeemed through purchasing goods. The Act against Unfair Competition also requires that the conditions of participation be established and that the following is specified:

Data protection is governed by the federal Data Protection Statute 1992, its implementation ordinance, and cantonal laws. The statute applies to any processing of data relating to natural and legal persons by private persons and federal bodies. It grants protection against the infringement of personality rights. Data protection law is currently under revision. The revised data protection law is expected to enter into force in mid-2022 or early 2023.

There is no specific consumer privacy law in Switzerland.

Producers and importers are subject to strict liability for damages caused by defective products relating to consumer goods (Product Liability Statute 1993). Since July 2010, a legal framework on product security (Product Security Statute 2009) providing security standards applies.

Main activities. Swiss Competition Commission (ComCo). The tasks of the Competition Commission include combating harmful cartels, monitoring dominant companies for signs of anti-competitive conduct, enforcing merger control legislation and preventing the imposition of restraints of competition by the state.

Main activities. The Federal Office for the Environment (FOENensures the sustainable use of natural resources including soil, water, air, quietness and forests. The FOEN is also responsible for protection against natural hazards, safeguarding the environment and human health against excessive impact and conserving biodiversity and landscape quality. It is also responsible for international environmental policy.

Because the implementation and enforcement of environmental laws is both federal and cantonal, there are also cantonal environmental offices.

Main activities. The Swiss Financial Market Supervisory Authority, FINMA, is Switzerland's independent financial markets regulator. Its mandate is to supervise banks, insurance companies, financial institutions, collective investment schemes and their asset managers and fund management companies.

The supervisory tasks of FINMA include authorisation, supervision and, where necessary, the enforcement of regulatory laws. In addition, FINMA can also regulate activities where it is authorised to do so.

Not applicable.