Building trust early: Data protection for startups

For many startups, data protection feels like something to deal with once the business has traction. But under Switzerland’s revised Federal Act on Data Protection (FADP), that approach no longer works. If your startup collects contact details, sends newsletters, uses analytics, or tracks users in any way, the law already applies to you.

Data protection is not just about avoiding fines. It plays a direct role in trust, credibility, and long-term scalability. Understanding the basics early can save significant time and effort later.

Step one: Understand what counts as personal data

Personal data includes any information that identifies a person, either directly or indirectly. This covers obvious details like names and email addresses, but also IP addresses, user IDs, and behavioral data collected through analytics tools.

The FADP also defines sensitive personal data, which is subject to stricter requirements. This includes information such as health data, biometric identifiers, religious or political beliefs, and other data that could seriously affect someone if misused. Startups working with this type of data must apply higher standards of care and security.

How the FADP compares to GDPR

The FADP is Switzerland’s national data protection law, but it aligns closely with the EU’s General Data Protection Regulation (GDPR). Both laws can apply beyond national borders.

• Swiss startups may need to comply with GDPR if they process data of EU residents
• Non-Swiss companies must follow FADP if they target Swiss users

One key difference is consent. Under Swiss law, data processing is generally permitted unless it clearly infringes on personal privacy. In the EU, every data activity must have a specific legal basis, such as consent or contractual necessity.

Do you need formal documentation?

Many early-stage startups worry about documentation obligations. The good news: if you have fewer than 250 employees and are not processing sensitive data or conducting large-scale profiling, you are usually not required to keep a formal record of processing activities.

That said, maintaining a simple internal overview is strongly recommended. A basic spreadsheet listing:

• what data you collect
• where it is stored
• why you need it
• who has access

is often enough and helps keep teams aligned as the company grows.

Transparency is mandatory, even for small teams

Anyone whose data you collect must be informed before processing takes place. This applies whether you are running a SaaS platform, collecting newsletter signups, or using cookies for analytics.

Every startup needs a privacy notice. At a minimum, it should explain:

• who you are
• what data you collect
• the purpose of collection
• who the data is shared with
• whether the data is stored or processed abroad

Clear and plain language is strongly encouraged.

Using third-party tools doesn’t shift responsibility

If your startup relies on cloud services, CRM tools, analytics platforms, or email providers, you remain responsible for how personal data is handled.

Each provider must be covered by a Data Processing Agreement (DPA). If the provider is based outside Switzerland or the EU, additional safeguards are required, such as standard contractual clauses adapted to Swiss law.

Security is not optional

The FADP requires companies to protect personal data with appropriate technical and organizational measures. The law does not prescribe specific tools, but expects security measures that match the level of risk.

Typical measures include:

• restricted access rights
• encryption where appropriate
• regular backups
• internal rules on data handling

The more sensitive the data, the stronger the safeguards must be.

Be ready to respond to user requests

Individuals have clear rights under the FADP. They can ask to:

• access their data
• correct inaccurate information
• request deletion
• object to certain processing activities
• receive their data in a usable format

Startups must respond within 30 days. If data includes information about multiple individuals, parts may need to be anonymized or redacted.

What happens if you don’t comply?

The revised FADP introduces criminal sanctions. This means that, in cases of intentional violations, individuals within a company can be fined – not just the company itself.

Risk increases when startups handle sensitive data without transparency, or deploy AI-driven systems without proper oversight and documentation.

Special rules for newsletters and cookies

• Newsletters require double opt-in. The confirmation email must only confirm registration and include the submitted details – no marketing content.
• Cookies require clear information about their purpose. While cookie banners are common, they are not legally mandatory in Switzerland. However, cookie usage must be explained clearly in the privacy notice, including how users can object.

Final thought

Data protection should be treated as part of your product, not just a legal obligation. It affects user trust, investor confidence, and international expansion.

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