UK’s CMA Targets UK Cloud Storage Providers for Unfair Treatment
30 May 2016
The United Kingdom’s Competition and Markets Authority (CMA), a government body designed to protect the interest of consumers, has targetted British cloud storage providers for unfair treatment to consumers. The CMA suggested that some organisations may be breaking the UK’s consumer laws by altering terms and conditions without proper notice. As a result, consumers potentially face losing items stored in cloud storage providers’ infrastructure.
The news came as a result of a CMA investigation into fair practise which revealed that around 30% of British adults utilise cloud storage services. While many use major names like Google Drive, and Dropbox, others use services provided with smartphone or tablet purchases. The CMA was particularly concerned by contracts that allow providers to terminate contracts without notifying storage users a reason why. The common practise of automatically renewing contracts without notice might also, the CMA said, contravene existing consumer rights laws.
“Cloud storage offers a convenient means of keeping family photos, favourite music and films and important documents safe, and accessing them quickly from any device,” explained CMA’s Senior Director, Consumer, Nisha Arora on the ‘Gov.uk’ website. “Our review found that people find these services really valuable. However, we also heard some complaints resulting from unfair terms in contracts. If left unchanged, these terms could result in people losing access to their treasured possessions or facing unexpected charges.” She added, “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.”
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