Advertising discount pricing in Swiss retail: SECO provides guidance on the Revised Price Indication Ordinance
On 1 January 2025, revised rules on self-comparative pricing entered into force. Retailers now benefit from increased flexibility when advertising price reductions. They may choose between the traditional "halving rule" and the "two-month limitation" and a new 30-day rule allowing unlimited comparison periods. This dual-track regime simplifies pricing strategies, especially in online and seasonal retail, and reduces administrative effort. In connection with this regime, SECO has provided additional guidance on the application of these revised rules.
Swiss retailers gain flexibility in price comparisons: revised rules on self-comparative pricing enter into force
"Now only CHF 5.95, previously CHF 9.95" – such statements are common in retail marketing. They constitute self-comparative price indications where the current price is directly compared to the retailer's previous price. While such comparisons can highlight discounts, they also carry the risk of misleading consumers – especially when it is unclear when the previous price was applied or for how long. To ensure transparency and fair competition, the Swiss Price Indication Ordinance (PIO) regulates these comparisons strictly.
As previously outlined in our Law-Now article, "Advertising discount pricing in Swiss retail: a closer look at compliance with the Price Indication Ordinance", the Swiss Federal Council revised the provisions on self-comparative pricing in the PIO, which took effect on 1 January 2025. This article builds on that earlier piece by taking a closer look at the legal implications of these changes for advertising practices in Switzerland – especially in light of SECO’s published guidance dated 1 May 2025.
Purpose of the PIO and the role of self-comparison
The PIO, rooted in the Federal Act against Unfair Competition (UCA), ensures that consumers receive accurate and transparent price information. Art. 16 para. 1 and para. 3 PIO permits retailers to advertise price reductions by comparing the current price to the previous price of the same product or service (i.e. self-comparisons). These are lawful only if the higher price was charged immediately prior to the reduction and applied to the exact same item.
Until the end of 2024, self-comparisons were subject to the "halving rule" and the "two-month limitation": the comparison period was limited to half the duration for which the original higher price was actually used, but in no case longer than two months. For example, if a product was sold at CHF 100 for 20 days, that price could be advertised as a comparison price for only 10 days.
New dual-track regime: two options for retailers
As of 2025, retailers may now choose between two approaches when conducting self-comparisons:
- Traditional rule: Retailers may continue applying the "halving rule" and the "two-month limitation" for short-term promotional pricing strategies.
- New 30-Day rule with unlimited comparison period: Alternatively, retailers may refer to a higher comparison price for an unlimited period if that price was actually used for at least 30 consecutive days immediately prior to the reduction. Moreover, this comparison price may continue to be used throughout a series of subsequent price reductions – provided there is no intervening price increase.
For example, a product priced at CHF 200 for 30 days may be reduced to CHF 150, then CHF 120, and then CHF 100. In each of these phases, CHF 200 may still be advertised as the comparison price. If the price is raised again, however, from CHF 150 to CHF 180, the right to advertise CHF 200 as a comparison price is lost.
Re-offering products
The revised rules also address cases in which goods or services are temporarily removed from sale due to reasons such as seasonality. Retailers may reuse the last valid comparison price upon reintroducing the product as long as the original comparison price had been applied for at least 30 consecutive days before the product was withdrawn. Thus, a snowboard sold in winter at CHF 400 for at least 30 days, reduced to CHF 300, and temporarily removed from sale, may again be advertised with the CHF 400 comparison price when offered the following winter.
Proof requirements and compliance obligations
Retailers must be able to credibly demonstrate (glaubhaft machen) that the conditions for using the comparison prices are fulfilled, if requested by the authorities. Suitable evidence may include sales receipts, delivery notes, advertising flyers or internal price lists. Absolute proof is not required.
Impact on retail advertising strategy
With the revised rules on self-comparative pricing now in force, Swiss retailers benefit from a more flexible legal framework that aims to better reflect the realities of modern retail, both online and offline. The changes are intended to offer retailers greater choice in structuring price comparisons and reducing administrative effort, such as using fewer price re-labelings. Retailers, however, must retain supporting documentation for a longer period to substantiate the conditions of their price comparisons if required.
