Surely there must be a law in Switzerland prohibiting people from using unlocked iPhones

There might even be a dodgy little clause in your mobile contract that says something like that.
Beware, they will find you and export you and your foreign iPhone - you are not allowed to buck the system here didn't you know that? This is exactly the type of social/moral slip in standards that will result in everyone drinking absynthe (or taking some other banned substance) that might lead to people having fun and that is no good. Retract your advice quick before they get onto you