“Swiss Made” Fraud
The practice of using "Swiss Made" or "Made in Germany" slogans to deceive consumers into believing that a product is actually manufactured in Switzerland or Germany is becoming increasingly prevalent in today's global market, and especially in the cannabis industry. Despite the prestige associated with these labels, many companies are taking advantage of them by opening post office (P.O.) boxes in Switzerland or Germany and falsely claiming that their products are made there.
The Swiss Made label is especially attractive to consumers, as Switzerland has a reputation for high quality and luxury goods. Swiss law requires that for a product to be considered Swiss Made, it must be manufactured in Switzerland and at least 60% of the production costs must be incurred in the country. This gives consumers the assurance that they are purchasing a product that has been made with the utmost care, safety and attention to detail.
However, some companies are taking advantage of these regulations by opening a P.O. box in Switzerland and falsely claiming that their products are made there. They use the Swiss Made label as a way to appeal to consumers and charge higher prices for their products. This is particularly true not only in the luxury goods market, where consumers are willing to pay more for the prestige associated with the Swiss Made label, but lately also in the cannabis industry.
Similarly, the "Made in Germany" label is also being misused by companies who are seeking to take advantage of Germany's reputation for high quality and engineering precision. Germany is renowned for its manufacturing industry, and many consumers believe that products that are made in Germany are of a higher quality than those made in other countries. However, some companies are using the "Made in Germany" label to deceive consumers into thinking that their products are actually manufactured or formulated in the country, when in reality, they only source untraceable ingredients from China or the US and mix them together, often without any safety measures.
This deceptive practice is not only unethical but also illegal, as it misleads consumers into purchasing products that are not what they believe they are. In addition, it undermines the credibility of the Swiss Made and Made in Germany labels, as well as the companies that are genuinely manufacturing products in Switzerland, Germany or any other EU country.
The use of P.O. boxes in Switzerland or Germany to deceive consumers into thinking that products are made there is particularly prevalent in the luxury goods market and fast growing markets like the cannabis industry. This is because consumers are willing to pay a premium for the prestige and quality associated with the Swiss Made and Made in Germany labels. Companies that are using these labels to deceive consumers are not only taking advantage of their trusting nature but are also damaging the reputation of the Swiss Made and Made in Germany labels.
In order to protect consumers from these deceptive practices, it is important that governments and regulatory bodies take steps to enforce existing regulations and increase consumer awareness of these issues. Consumers should also be encouraged to do their own research and question the authenticity of the Swiss Made and Made in Germany labels. Here are some simple steps that can help identify the “Swiss-fraud” in the cannabis industry:
Ask if you can visit the cultivation site
Ask if you can visit the processing facility and perform an external audit
Ask if the company can issue batch traceability tables for each product produced
It is economically unlikely that a product produced in Switzerland will be cheaper than one produced for example in Lithuania for a number of reasons.
Firstly, labor costs in Switzerland are significantly higher than those in Lithuania. This is due to the higher standard of living in Switzerland, as well as its strict labor laws that protect workers' rights and benefits. This results in higher salaries for workers, which in turn increases the cost of production.
Secondly, the cost of raw materials and components used in the production process are also typically higher in Switzerland than in Lithuania. This is due to Switzerland's location and the distance that raw materials and components need to be transported to reach the manufacturing facilities. In addition, the Swiss franc is a strong currency, which makes imports more expensive.
Thirdly, the cost of doing business in Switzerland is generally higher than in Lithuania. This includes costs such as rent, utilities, and taxes, which are all higher in Switzerland due to the country's higher standard of living and its favorable business environment.
Finally, Switzerland is known for its strict environmental and quality standards, which are some of the highest in the world. This results in additional costs for companies producing products in the country, as they need to comply with these standards and invest in technology and equipment that meet these requirements.
In contrast, Lithuania has a lower cost of living and a more relaxed business environment, which allows companies to produce certified goods at a lower cost. This results in products that are cheaper than those produced in Switzerland, even though they may not have the same level of prestige associated with the Swiss Made label.
In conclusion, the combination of higher labor costs, the cost of raw materials and components, the cost of doing business, and the strict environmental standards in Switzerland make it unlikely that a product produced in the country will be cheaper than one produced in Lithuania.
It can be concluded that, the misuse of the Swiss Made and Made in Germany labels by companies that are using P.O. boxes in Switzerland or Germany to deceive consumers is a growing issue that needs to be addressed. These labels are symbols of quality and prestige, and companies that are using them to deceive consumers are not only undermining the reputation of these labels but also damaging the trust that consumers have in the products that they purchase. Consumers should be cautious and take steps to verify the authenticity of the Swiss Made and Made in Germany labels, and governments and regulatory bodies should take steps to enforce existing regulations and increase consumer awareness of these issues.