Cloud storage: consumer compliance review

The CMA reviewed whether cloud storage providers were complying with consumer protection law.

From:
Competition and Markets Authority
Published
1 December 2015
Last updated
17 February 2017 — See all updates
Case type:
Consumer enforcement
Case state:
Closed
Market sector:
Distribution and service industries and Electronics
Opened:
1 December 2015
Closed:
17 February 2017

Contact

[email protected]

Case closed

17 February 2017: Following engagement with the CMA, another 3 cloud storage providers, Amazon Media EU S.a.r.l. (Amazon), Apple Distribution International (Apple), and Microsoft Corporation (Microsoft) have committed to make changes to their contract terms. A summary of the changes to be made by each provider can be found below.

This latest action brings to an end the CMA’s current review of compliance with consumer law in the cloud storage sector. During this review, 10 cloud storage providers co-operated and constructively engaged with the CMA and voluntarily agreed to make improvements to their terms and conditions.

The CMA remains interested in unfair terms and conditions, particularly in the digital economy. Companies in the cloud storage, and other technology-driven sectors, are urged to keep their terms and conditions under review and to continually improve the fairness and clarity of their consumer contract terms. The open letter to business provides more information.

Update – 4 November 2016

4 November 2016: A further 4 cloud storage providers have committed to providing fairer terms for their customers following publication of the CMA’s consumer law compliance review findings report in May 2016.

British Telecommunications Plc (BT), Dropbox Inc and Dropbox Ireland (Dropbox), Google Inc (Google), and Mozy International Limited (Mozy) have engaged with the CMA to make improvements to their contract terms. A summary of the changes to be made by each provider can be found below.

The CMA is still working with other companies in the cloud storage sector to improve compliance with consumer law and ensure a better service for users.

Findings report

27 May 2016: Following the consumer law compliance review, the CMA has published its findings report. The CMA found that some cloud storage providers are using contract terms and practices that it is concerned could breach consumer protection law.

The report sets out the CMA’s views about what it considers businesses should do to address its concerns and help ensure that their terms and practices are fair.

Following engagement with the CMA during the course of the review, Dixons Carphone plc trading as Dixons Carphone Group/Knowhow Cloud/Geeksquad Cloud (Dixons Carphone plc), JDI Backup Limited trading as JustCloud (JustCloud) and Livedrive Internet Ltd (Livedrive) have already given commitments to provide fairer terms for their cloud storage customers. A summary of the changes to be made by each provider can be found below.

The CMA is continuing to engage with a number of other cloud storage providers and will update on this engagement in the coming months.

Alongside the report, the CMA has also published an open letter to businesses and guidance for consumers.

Update – 1 April 2016

1 April 2016: The CMA has now analysed responses received to our invitation to comment. We have identified a number of contract terms and business practices that we are concerned may not comply with consumer protection law. For more information please see the investigation update below.

Launch of review

Updates to this page

Published 1 December 2015
Last updated 17 February 2017 + show all updates

  1. Case closed: summary of changes published.

  2. Investigation update published.

  3. Findings report published.

  4. Investigation update published.

  5. First published.

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