That law prevents companies from being allowed to use Swiss symbols/names if those products are not made in Switzerland. Think of symbols such as the white cross on a red background, certain mountains, as well as Wilhem Tell. Depending on the type of product, the rules are stricter, but for dairy products, the requirement is that 100% of the material must come from Switzerland.
When Toblerone (founded in Switzerland in 1908) announces that it is moving part of its production to Slovakia, its packaging must also be changed. Not only are the words “Switzerland” replaced by “established in Switzerland 1908,” but the summit of the Matterhorn also has to make way.
The ancient mountain peak will be replaced by a more generic one. The question is whether consumers will notice this. They will mainly associate the chocolate and the quality of the chocolate with the logo, the triangular packaging and especially the triangular shape of the pieces of chocolate.