What does this cover?

The Competition and Markets Authority (CMA) has carried out a review of the cloud storage sector (Review) for its compliance with consumer law.

The Review was provoked by consumer concerns over service changes and price and that some practices and terms being used in the cloud storage sector may be in breach of consumer law.  The CMA is also aware of concerns about loss or deletion of data.

Up until mid-January 2016, the CMA sought responses from businesses as to their practices, and from consumers and industry experts about their experiences. A statement setting out the CMA's next steps as a result of the responses is keenly awaited.

To view the press release, please click here.

What action could be taken to manage risks that may arise from this development?

To the extent organisations make cloud storage solutions available to consumers organisations should ensure that the terms are compliant with the relevant legislation: (1) For unfair terms – Part 2 of the Consumer Rights Act 2015 or the Unfair Terms in Consumer Contracts Regulations 1999 for contracts entered into before 1 October 2015, and the Consumer Protection from Unfair Trading Regulations 2008; (2) For data protection – the DPA.