Amazon, Apple and Microsoft change consumer cloud contracts

The Competition and Markets Authority (CMA) opened a review into consumer cloud computing storage service providers' compliance with the Consumer Rights Act in late 2015, and in mid-2016 urged providers to review their consumer contract terms and conditions after raising concern that some commonly used clauses might breach consumer protection rules.

Subsequently, the CMA announced that BT, Dropbox, Google and Mozy had all agreed to amend their consumer contract terms. JustCloud, Livedrive and Dixons Carphone also updated their cloud contracts. Now, Amazon, Apple and Microsoft have each agreed to revise their terms and conditions to address issues such as notice of changes to contracts, cancellation rights and refunds, and notice of the suspension or cancellation of services.

Andrea Coscelli, the CMA's acting chief executive, said: "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."

"We are pleased that Amazon, Apple and Microsoft have joined seven previous companies in working with the CMA and agreeing commitments to improve their terms and conditions and, as a result, millions of cloud storage users will benefit from fairer terms which will help them make the right choices when using cloud storage services," Coscelli said.

The CMA said that the agreed changes bring its consumer cloud storage review to a conclusion, but that it "remains interested in unfair terms and conditions, particularly in the digital economy".

It said: "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."