The CMA is today launching a review of compliance with consumer law in the cloud storage sector.
The
review has been prompted by consumer concerns about price and service changes
for cloud storage.
Cloud
storage is used by a growing number of UK consumers to store photographs, music
and documents. It is estimated that 40 per cent of UK adults use cloud storage
services.
The
Competition and Markets Authority review of consumer law compliance in this
important sector follows some reports of practices and terms being used that
may breach consumer law. For example, the CMA has heard about consumers being
surprised by significant price increases and by reductions to unlimited storage
capacity deals after contracts have been agreed. The CMA is also aware of
concerns about the loss or deletion of some consumers’ data.
The
CMA’s review will assess how widespread these practices are, whether they
breach consumer law and how they are affecting consumers.
The
review is open for responses until 15 January 2016. The CMA wants to hear
from businesses about their practices
and from consumers and industry experts about their experiences.
Nisha
Arora, CMA Senior Director, Consumer, said:
“Cloud
storage is a dynamic and growing sector which is already highly valued by
consumers.
“We
want to hear from business, interested organisations and consumers about their
experiences, to assess whether companies understand and comply with consumer
law and whether cloud storage services are working well for consumers as a
result.
“If our
review finds breaches of consumer protection laws we will take further action
to address these which could include enforcement action using our consumer law powers, seeking
voluntary change from the sector or providing guidance to business or consumers.”
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