Online commerce in Switzerland: Rights and obligations of a shop operator
Table of Contents
Online commerce is booming! Many companies want to capitalize on this and are planning to open an online store. New software solutions make it easy to run an online store today, allowing even people without extensive IT knowledge to implement their projects. In addition to technical issues, some key legal considerations should be taken into account.
Trust and security
Anyone who operates an online shop should ensure that their business and consumers are protected. Consumer protection encompasses all measures and efforts designed to protect individuals who consume goods or services. Consumers need this protection because they are at a disadvantage compared to manufacturers due to a lack of expertise or information.
If you comply with the legal obligations of a shop operator, this shouldn’t be a problem. This also has the advantage that consumers can be sure of the company’s reliability and are more likely to make a purchase. Customer trust and a sense of security are among the most important criteria. On Konsumentenschutz.ch, the article “How do you recognize reputable online shops?” goes into more detail.
One click to the purchase contract
A purchase agreement, according to Articles 184 et seq. of the Swiss Code of Obligations (OR), can be concluded digitally “with a click.” This requires that both contracting parties agree on the essential points. These include, in particular, the object of purchase, the purchase price, and the conclusion of the purchase agreement.
If special, non-mandatory provisions must apply to the purchase, you can include them in the general terms and conditions (GTC). The GTC become part of the contract if the buyer was informed of the GTC before concluding the contract and had the opportunity to read and agree to them.
With regard to the provisions of the Swiss Code of Obligations (CO), the following points should be emphasised:
- Right of withdrawal: Swiss law does not provide for a return period or any other right of return for online retailers after the order has been shipped. However, the Code of Ethics of the Swiss Mail Order Association recommends a return period of 14 days.
- Delivery times: Swiss law does not stipulate a maximum delivery period. To provide customers with a certain degree of security, the seller can specify a deadline in the contract.
- Warranty: If a product is defective or lacks a guaranteed feature, the buyer can assert a warranty claim for a period of two years. A guarantee claim can be contractually agreed upon in addition to or instead of the product.
Source: More information here.
The duties of a shop operator
What mistakes should you avoid when opening an online store?
Here’s an overview:
Imprint obligation
On an eCommerce site, the customer must have access to detailed information about the operator. Customers want to know who they’re dealing with. The following information must be clearly visible on the website:
- Company name
- Address (street, not a PO box)
- Postal code, city
- Telephone number
- Email address
- Contact person’s name
- If available: Reference to commercial register entry or VAT number
Source: More information here.
Privacy Policy
From the moment sensitive customer data (name, address, etc.) is collected, an online shop is subject to the Federal Data Protection Act.
On an online store, a privacy policy serves to inform about the methods used to protect user privacy. If you want to gain customer trust, it’s advisable to create such a document and publish it on the website.
The privacy policy should contain at least the following points:
- What legal provisions govern the provider’s data protection practices?
- Is personal data collected and for what purpose?
- Is personal data shared with third parties and for what purpose?
- What decisions can users make regarding the processing of their data?
- What rights (in particular, the right to information and the right to object) do users have?
- Who is responsible for answering questions regarding the processing of personal data?
- What security measures are taken to protect personal data?
General Terms and Conditions
The basic rule is: Terms and Conditions govern day-to-day legal business and are not a marketing tool. Without them, the discretionary legal provisions of the Swiss Code of Obligations (OR), the Unfair Competition Act (UWG), etc. apply. However, we advise every shop operator to maintain their own terms and conditions and make them an integral part of the purchase transaction.
In the general terms and conditions, the online seller summarizes all legal aspects of the business. Once the customer has agreed to this document, it becomes an integral part of the purchase contract. For the terms and conditions to become valid, they must be accepted by both parties. For example, the online shop can include a checkbox for the text “I have read and accepted the terms and conditions,” which must be checked during the ordering process.
Contents of the General Terms and Conditions
When drafting terms and conditions, all steps of the sales process should be considered. Here are some points to consider:
- Warranty. Warranty terms for the goods or services sold during the transaction.
- Data protection. Use of collected data, encryption technology, etc.
- Orders. Billing and payment terms, VAT, etc.
- Delivery. Shipping areas, delivery times, etc.
- Liability. For example, in the event of damage to the goods during shipping.
- Returns. Exchange and return policies.
- Applicable law and jurisdiction. In the event of a dispute, the competent court and applicable law (reference to Swiss law).
Abusive or inappropriate statements in the Terms and Conditions are illegal.
Source: More information here.
Transparent pricing and shipping costs
Pricing must be accurate and stated in Swiss francs. Taxes, fees, and delivery costs must also be listed. The customer must be able to see the total price of the order. If customers have the option to pay for their order by credit card, the applicable fees should also be transparent.
Source: More information here.
Respect third-party copyrights
Images are important for skillfully showcasing products online, as they are the only way customers can get a good impression of the product. However, this content may not simply be copied from other sites just because it’s available online. Due to copyright reasons, using third-party content is almost always illegal. You either have to create the images and videos yourself or purchase licenses. There are also portals that offer images for free use, but these usually only apply to private use.
Important legal publications
Swiss law doesn’t contain a single, comprehensive body of consumer law. The essential elements are regulated in the Swiss Code of Obligations (OR), but other laws also contain paragraphs that govern commercial transactions between sellers and buyers. Below is a non-exhaustive list of links:
- Code of Obligations
- Unfair Competition Act (UWG)
- Price Disclosure Regulation (PBV)
- Data Protection Act (DSG)
Online trade in the EU
EU legislation goes further in some respects than the regulations in Switzerland. If consumers in EU countries are also addressed, the following issues in particular must be considered in addition to the regulations already mentioned:
- Right of withdrawal: In principle, the customer can return a product within 14 days of receipt.
- Payment, delivery, and service conditions, as well as delivery date: The relevant information must be provided. Unless otherwise agreed, the delivery period is a maximum of 30 days.
- Clear information: In addition to the seller’s contact details, the key features of the product or service must be disclosed. The total price, including all taxes and duties, must also be stated. Costs that cannot be calculated in advance must be indicated, and the method of price calculation must be explained.
- Warranty: The statutory warranty is at least two years. During this period, the consumer can request repair or replacement of the defective product. If this fails, withdrawal from the contract or reimbursement of the reduced value is generally possible.
- Terms and Conditions: The consumer must be able to access and save the terms and conditions upon conclusion of the contract.
- Order button: The button for the final order confirmation must be labeled with the words “order with payment” or another clear formulation.
Source: More information here.
You can find more information about creating an online shop here.
