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Publication 10 May 2024 · Albania

Switzerland: Explicit legal regulation against Greenwashing in the Swiss Unfair Competition Act

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Green leaves

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May 2024

As part of the revision of the Federal Act on the Reduction of CO2 Emissions ("CO2-Act"), the Swiss parliament has amended the Swiss Unfair Competition Act ("UCA"). The new clause, art. 3 para. 1 let. x revUCA, requires that any claims about oneself, one’s products or services in relation to climate impact must be supported by objective and verifiable evidence to be deemed fair. Failing to meet this requirement could result in civil or criminal sanctions, applicable to both individuals and companies. For the revision, there is a referendum period that lasts until 4 July 2024. Should this period conclude without any challenges, the Federal Council is set to implement these changes on 1 January 2025.

This amendment of the UCA will shift the burden of proof, making it the responsibility of the claim maker to substantiate their claims and therewith enhancing the UCA's effectiveness in combating greenwashing. Currently, legal recourse against greenwashing primarily falls under art. 3 para. 1 let. b UCA, which addresses misleading practices ("Irreführung"). Under this provision, the burden of proof initially rests with the opposing party and is only reversed in exceptional cases following a balancing of interests (see art. 13a UCA).

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