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Revision of the Swiss Price Indication Ordinance: Simplification of the Rules for Self-Comparison

18.12.2024

The Swiss Price Indication Ordinance ("PIO") shall ensure price transparency and comparability and prevent misleading prices to consumers. Amongst others, the PIO sets out requirements for the self-comparison of prices. So far, price promotions by means of self-comparisons were only permissible to a very limited extent. To make self-comparisons more flexible and reduce the administrative burden, the Federal Council decided to amend the PIO's respective provision and provide the suppliers with two options when comparing their prices. The amendment will enter into force on 1 January 2025.

Unlimited self-comparison will be possible, provided that the comparison price has actually been used for at least 30 days beforehand

From 1 January 2025 onwards, the self-comparison, i.e. the indication of a previously applicable comparison price next to the actually payable, discounted price (e.g. "50% discount – CHF 9 instead of the previous CHF 18"), will be possible without time restriction, provided that the product in question was actually offered at the comparison price (i.e. in the example CHF 18) for at least 30 consecutive days. The comparison price may be indicated for an unlimited period of time for all subsequent, successive price reductions. Hence, the comparison price of the example (CHF 18) can be compared with a different discounted price (e.g. discounted price of CHF 7 instead of CHF 9 as in the first example) at any later stage (e.g. "CHF 7 instead of the previous CHF 18").

If the discounted goods are temporarily removed from the range, the last comparison price actually used for 30 days (in the example CHF 18) may be displayed again after the goods in question are reintroduced into the range (e.g. "CHF 6 instead of the previous CHF 18").

The previously applicable rule for self-comparison continues to apply

The new rule does not replace the previous regulation on self-comparison, but instead supplements it. According to the "old" rule, a comparison price (e.g. CHF 18) can be displayed next to the discounted price actually to be paid (e.g. CHF 9), provided that the comparison price was actually used until immediately before the introduction of the discounted price. However, disclosure of this comparison price is limited in time: the comparison price can only be displayed next to the discounted price for a period equal to half the duration for which the comparison price was the actual price to be paid, but in any event for no longer than two months. For example, if the comparison price was CHF 18 for 20 days, the comparison price can only be displayed next to the discounted price of CHF 9 for 10 days.

This "old" rule continues to apply also after 1 January 2025. In practice, it will be relevant only if the comparison price had to be paid for a period of less than 30 consecutive days before the discounted price was announced. Otherwise, suppliers may use the new rule described above.

 

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