The Swiss Data Protection Act (FADP): 10 Compliance Traps to Watch Out For

1. Failing to Identify What Data Falls Under FADP

Many companies mistakenly believe that only Swiss-based businesses must comply. However, FADP applies to any company processing the personal data of Swiss residents—even if based abroad.

✅ Solution: Conduct data mapping to identify whether you process Swiss personal data and ensure compliance.

2. Lack of Transparency in Data Collection

FADP requires companies to inform individuals when collecting personal data, including details on purpose, retention, and cross-border transfers. Vague privacy policies or hidden data collection practices violate this requirement.

✅ Solution: Update privacy policies, consent forms, and notices to ensure full transparency.

3. Inadequate Handling of Data Subject Requests

Under FADP, individuals have the right to access, correct, delete, or transfer their data. Companies that fail to process these requests in a timely manner risk non-compliance.

✅ Solution: Implement an efficient request management system and train employees on handling data access rights.

4. Non-Compliance with the Stricter Breach Notification Rules

Unlike GDPR’s 72-hour rule, FADP requires companies to notify Swiss authorities as soon as possible after a data breach if there is a high risk to individuals. Delays in reporting can lead to hefty fines.

✅ Solution: Establish a data breach response plan and conduct incident response drills to ensure fast action.

5. Poor Data Security Practices

FADP puts strong emphasis on data security, requiring businesses to implement appropriate technical and organizational measures. Weak security—such as unencrypted databases, poor password policies, or lack of access controls—can lead to violations.

✅ Solution: Use encryption, multi-factor authentication (MFA), and regular security audits to safeguard sensitive data.

6. Ignoring Cross-Border Data Transfer Requirements

Many companies transfer Swiss personal data outside Switzerland without adequate safeguards. FADP prohibits data transfers to countries without an adequate level of protection, unless companies implement Standard Contractual Clauses (SCCs) or Binding Corporate Rules (BCRs).

✅ Solution: Ensure all international data transfers comply with FADP’s legal framework.

7. Not Conducting Privacy Impact Assessments (PIAs) for High-Risk Processing

FADP mandates that companies perform Privacy Impact Assessments (PIAs) when processing high-risk personal data (e.g., biometrics, health data, or AI-driven profiling). Many organizations overlook this requirement.

✅ Solution: Identify high-risk data processing activities and conduct regular PIAs.

8. Failing to Appoint a Swiss Representative (for Foreign Companies)

If your business does not have a Swiss office but processes Swiss personal data on a large scale, you must appoint a Swiss representative—a requirement often ignored by foreign companies.

✅ Solution: Appoint a Swiss representative to handle compliance matters and act as a local contact point.

9. Over-Reliance on Consent Without Exploring Other Legal Grounds

While FADP doesn’t require a specific legal basis like GDPR, companies must still justify data processing. Many businesses rely solely on user consent, which can be withdrawn—disrupting operations.

✅ Solution: Consider other justifications for data processing, such as contractual necessity or legitimate interest.

10. Not Training Employees on FADP Compliance

A significant number of data breaches result from human error. Companies that fail to train employees on FADP rules and secure data handling practices put themselves at high risk.

✅ Solution: Provide regular employee training on data protection best practices, phishing awareness, and security protocols.