Interpellation Moser (24.3152): A level playing field for online marketplaces
Submitted text
For years, foreign online marketplaces such as Shein, Temu and Wish have been luring Swiss consumers with aggressive marketing and rock-bottom prices. Various investigations in the EU and in Switzerland have come to the conclusion that these platforms are used to market goods at dumping prices that do not meet our legal requirements regarding product safety.
This situation not only poses a risk to consumers, but also puts domestic manufacturers and retailers at a disadvantage, as they are confronted with additional costs compared to their foreign competitors due to the need to ensure compliance with local regulations and product safety standards, which manifests itself in higher product prices. These requirements and standards are monitored by Swiss manufacturers and retailers – there are also recalls of defective products, which can result in a loss of confidence for the manufacturer or retailer as well as financial damage. In practice, however, it is doubtful that a low-cost East Asian factory – if it is known as a manufacturer at all – can be prosecuted or respond to a claim from a European customer. This leads to unacceptably unequal competitive conditions for market participants. I would therefore ask the Federal Council to answer the following questions:
- What is the Federal Council doing to enforce the legal requirements regarding product safety in relation to foreign online marketplaces?
- In the EU, the Market Surveillance Ordinance explicitly prohibits the advertising of products that do not comply with legal safety requirements, unlike in Switzerland. This also applies to online marketplaces. What is the Federal Council’s position on a similar regulation in Switzerland?
- What other measures does it see to ensure a level playing field between domestic and foreign market participants?
- In fulfillment of my postulate “A level playing field for all online retailers” (17.4228), the Federal Council proposed further measures in 2019 to eliminate unequal conditions between foreign and domestic mail order companies. To what extent have these been implemented and have they been evaluated?
- Is the Federal Council aware of the extent to which foreign online marketplaces receive direct or indirect financial support from their countries of origin?
Opinion of the Federal Council of 15.5.2024
Question 1:
Foreign online stores with products intended directly for Swiss consumers are subject to the Product Safety Act (PrSG; SR 930.11) if they offer these products commercially in Switzerland or place them on the market. However, due to the principle of territoriality, it is not possible for the Swiss market surveillance authorities to take action against foreign online stores or webshops that supply products directly to Swiss consumers. Swiss consumers who purchase a product for themselves privately are not covered by the PrSG. The PrSG also does not apply where a special law regulates an aspect conclusively. For example, according to the Foodstuffs Act (LMG; SR 817.0), the ordering of products covered by the LMG for private domestic use is explicitly excluded from the scope of application. Privately imported products can be randomly checked and seized at the border by the customs authorities.
Questions 2 and 3:
Products imported into Switzerland on a commercial basis must meet the safety requirements of the PrSG and the conformity requirements of the Federal Act on Technical Barriers to Trade (SR 946.51). The market surveillance authorities are supported in their market surveillance activities by, among other things, AI-based search engines such as web crawlers, which can systematically search internet platforms with online offers. In addition, the federal agencies concerned provide information on their websites about the risks of online purchases on foreign platforms and recommend buying in Switzerland.
Foreign market surveillance authorities face the same challenges as national ones. Consequently, Switzerland is committed to close cooperation of working groups with market surveillance authorities of EU Member States, based on the Agreement between the Swiss Confederation and the European Union on Mutual Recognition in relation to Conformity Assessment (SR 0.946.526.81).The Federal Council is monitoring developments in the European environment and will examine and, if necessary, implement possible measures.
Question 4:
The measures taken as part of the postulate 17.4228 The measures deemed most suitable, such as automated and intelligent risk analysis in the enforcement of non-customs legislation, will be implemented as part of the revision of customs law (22.058) and the funding approved by Parliament on 2 September 2017 for the modernization and digitalization of the Federal Customs Administration (DaziT; 17.021) have been implemented. The Federal Council and the Federal Office for Customs and Border Security (BAZG) provide regular updates on the status of their implementation.
Question 5:
The Federal Council is not aware of any such information.