Product Safety in Online Retail: Strengthening Enforcement Without the "Swiss Finish"

The amendment is intended to align Swiss law with that of the EU. However, the draft goes further when it comes to online marketplaces: platform operators are to be considered economic operators across the board, whereas the EU imposes specific obligations on them tailored to their role. This special Swiss solution is not justified. Another problem is that digital products such as software are to be covered in the future without this being clearly regulated in the law. As a result, even enterprise software could fall under the PrSG—raising questions about manufacturer obligations, conformity, recalls, and market surveillance in the event of software errors or updates. Such a far-reaching expansion of the PrSG must be clearly rejected.

Violations should be subject to penalties of up to 10 percent of Swiss revenue—even in the absence of fault. The fact that no clear procedural safeguards are provided poses a problem under the rule of law for sanctions of this magnitude. At the same time, it remains unclear who is actually considered an economic operator; the Federal Council could expand this group by ordinance. The law itself must clearly define who is subject to such a high risk of sanctions. Furthermore, the sanction must be contingent on fault.

To finance the additional inspections, the Federal Council is to be able to levy a fee of up to five francs per product that is delivered via online retail directly from abroad to end users in Switzerland. In principle, this is correct: whoever causes the additional expense should also bear it. However, the draft proposal seeks to classify products into categories, each with its own rate. This is an unnecessarily complicated approach that creates burdens for all parties: companies must file declarations, authorities must conduct inspections, and there is a risk of difficult questions regarding the delineation of categories. The business community therefore calls for a uniform fee per shipment as a simple and efficient tool. Furthermore, the fee must not exceed the costs of the inspections, and its proceeds must be allocated entirely to market surveillance rather than replacing existing federal funds. Ultimately, economiesuisse supports the bill’s objective. Swiss safety standards must be effectively enforced even under the conditions of new digital distribution models. However, the solution must not lie in isolating the Swiss market or in a “Swiss Finish” regulatory approach. Rather, what is needed are rules that apply equally to comparable products regardless of the distribution channel, meet the requirements of the rule of law, and can be enforced with as little administrative burden as possible.

The full list of concerns and justifications can be found in the statement by economiesuisse.