CMA tackles cloud storage contracts
The Competition and Markets Authority (CMA) has responded to concerns over cloud storage, having found that some businesses have some contract terms and practices that could be in breach of consumer law.
These include giving cloud storage companies the ability to:
- change the service or terms of the contract at any time, for any reason and without notice
- suspend or terminate the contract without notice for any reason
- automatically renew a contract at the end of a fixed term without giving notice or withdrawal rights
The CMA says it welcomes the commitments to changing these terms and practices already made by Dixons Carphone, JustCloud and Livedrive and that it expects other companies in the sector to make similar improvements. In addition, the regulator has published a 60-second summary and two infographics on choosing the right cloud storage service and what terms and conditions to look out for.
Nisha Arora, CMA senior director, consumer, says: “In this rapidly-developing market, it’s important that we act now to ensure that businesses comply with the law and that consumers’ trust in these valuable services is maintained. We welcome the fact that a number of companies have already agreed to change their terms, and expect to see improvements from other companies.”