Data protection for start-ups in Switzerland: A guide for founders

Protecting personal data is not only a legal must, but also a key trust factor for your customers. Especially for start-ups, which often offer innovative digital solutions, a solid understanding of data protection regulations is crucial. In Switzerland, the Data Protection Act (DSG) regulates the handling of personal data. This blog post explains why data protection is important for your startup, which legal requirements you need to observe and how you can successfully implement your data protection guidelines.

 

1 Why is data protection important for startups?

Data protection not only plays a legal role, but is also a decisive factor in building trust with customers, investors and business partners. Successful data protection management therefore not only protects your company from possible legal consequences that may arise in the event of breaches of data protection laws, but is also central to your company's reputation.

Advantages of good data protection management:

• Strengthening the trust of customers and partners
• Legal securityespecially when handling sensitive data
• Avoidance of fines and legal problems
• Improved brand value through responsible handling of data

 

Important laws and guidelines on data protection in Switzerland

In Switzerland, the Data Protection Act (DSG) forms the basis for the protection of personal data. The new version of the DPA, which came into force on September 1, 2023, strengthens the rights of data subjects and increases the requirements for companies. In addition, start-ups that operate internationally or serve customers from the EU should also comply with the European General Data Protection Regulation (GDPR) should also be taken into account.

The Swiss Data Protection Act (DSG & nDSG)

The FADP regulates the handling of personal data by private companies and public authorities. It specifies how data may be collected, stored and processed. Important innovations in the revised FADP include

• Duty to informCompanies must explain to data subjects exactly what data they collect and for what purpose.
• Right to informationCustomers have the right to receive information about the processing of their data.
• Obligation to report data breachesData breaches must be reported to the competent supervisory authority.
• Stricter sanctionsViolations of the DPA can result in penalties of up to CHF 250,000.

The General Data Protection Regulation (GDPR)

The GDPR is one of the strictest data protection regulations in the world. It affects all companies that process the data of EU citizens, even if the company itself is not based in the EU. The central obligations include:

• Consent to data processingPersons must actively consent to their data being used.
• Right to be forgottenCustomers can request that their data be deleted.
• High finesNon-compliance could result in fines of up to 20 million euros or 4% of annual global turnover.

 

What data is covered by the Data Protection Act?

The DSG covers all personal datai.e. information that relates to an identified or identifiable person. This includes

• Basic dataName, address, date of birth, e-mail address
• Financial dataAccount data, credit card data
• Behavioral dataOnline activities, such as user behavior on websites
• Particularly sensitive dataHealth data, religious beliefs, ethnic origin, genetic information

Practical tipIf you are unsure whether certain information is covered by the DPA, you should assume that it is subject to protection and treat it with appropriate care.

 

Steps to implement data protection in your company

An effective data protection concept protects your company from legal risks and improves your relationships with customers and partners. Here are the most important steps to implement data protection in your startup:

Appoint a data protection officer

A data protection officer is responsible for ensuring compliance with data protection regulations. Depending on the size of your startup, this is not always mandatory, but recommended - especially if you process sensitive data or operate internationally.

Create privacy policy

Your website and apps should contain an easy-to-understand privacy policy. This explains clearly and transparently to users what data is collected and how it is processed and protected. A good privacy policy contains:

• Which data you collect and for what purpose
• How long the data is stored
• Rights of users (e.g. right to information, correction, deletion)
• Contact information for data protection questions

Obtaining consent for data processing

Before you process personal data, you must ensure that the data subjects have given their express consent give. This is particularly relevant when using data for marketing purposes or when transferring data to third parties.

Practical tipMake sure that consent must always be actively given (opt-in). Preset checkboxes are not legally permissible.

Implement security measures

The protection of data requires technical and organizational measures to prevent unauthorized access, loss or manipulation. These include

• Encryption of data, especially when transferring sensitive information
• Access controlsthat ensure that only authorized persons can access data
• Backups and regular updates of the IT systems

Managing data protection incidents

In the event of a data loss or data breach, you must report this to the responsible authority within 72 hours. Affected persons must also be informed.

 

Data protection and marketing: what you need to consider

Data protection also plays a central role in digital marketing. There are strict regulations, especially when using tools such as Google Analytics, Facebook pixels or email marketing. Make sure that:

• Cookies and tracking technologies are only used with the user's consent.
• newsletter-subscribers must actively agree (double opt-in).
• You with retargeting and remarketing comply with the GDPR guidelines.

 

Conclusion: Data protection as a success factor for your startup

Data protection is not only a legal obligation, but also an important success factor for your startup. It strengthens the trust of your customers, minimizes legal risks and supports the long-term success of your company. By complying with legal requirements and proactively implementing measures to protect your customers' data, you are building a strong foundation for responsible and future-oriented business practices.