Isn't that the intended behaviour? Also, on-off state indicating switches don't make much sense in such a circuit. What works is having a small (typically orange-ish) light inside the switches that indicate the state.
Anecdote: We have those in my apartment but they're wired up to be on when the circuit is off. This is implemented in what is likely the worst possible way. We haven't quite figured them out but when off, there's still juice on the line - enough to make some cheap LED bulbs flicker, but not enough to light up a "classic" light bulb or an LED with high resistance. It's great for making electricians cry about the stupidity, as I can take out one of the LEDs in the hallway (when it's off) and the others start to do a strobe effect.
Anecdote: We have those in my apartment but they're wired up to be on when the circuit is off. This is implemented in what is likely the worst possible way. We haven't quite figured them out but when off, there's still juice on the line - enough to make some cheap LED bulbs flicker, but not enough to light up a "classic" light bulb or an LED with high resistance. It's great for making electricians cry about the stupidity, as I can take out one of the LEDs in the hallway (when it's off) and the others start to do a strobe effect.