Amazon, Apple and Microsoft have committed to providing cloud storage users with fairer contracts, following action taken by the CMA.
Complying with consumer law
These three companies are the latest cloud storage providers to improve their terms and conditions following the Competition and Markets Authority’s (CMA) review of compliance with consumer law in the sector.
Last year, the CMA secured separate commitments from JustCloud, Livedrive and Dixons Carphone, and BT, Dropbox, Google and Mozy to make changes to their contract terms.
“People rely on cloud storage to keep things such as treasured family photos, music, films and important documents safe, so it is important that they are treated fairly and should not be hit by unexpected price rises or changes to storage levels,” said Andrea Coscelli, CMA Acting Chief Executive.
Amazon, Apple and Microsoft’s cloud storage
Amazon, Apple and Microsoft have separately agreed to make changes to their respective terms and conditions, including in some common areas relating to:
- Adequate notice to customers before significant changes are made to the service
- Cancellation rights and pro-rata refunds if customers don’t want to accept significant changes
- Adequate notice, where appropriate, before the service is suspended or cancelled
Cloud storage is used by 3 in 10 British adults
Cloud storage is used by around 3 in 10 British adults in a personal capacity. In its initial review of the sector, the CMA found that the majority currently use free services that come with their devices and are generally satisfied with the service they receive.
However, there were some terms and conditions which caused concern, for example, terms which gave companies the ability to change the service or terms of the contract or suspend or terminate the contract, for any reason and without notice, and so the CMA has been working with the industry to improve compliance with consumer law, and is succeeding.
Edited from press release by Jordan Platt.