Cloud computing service providers were criticised by a UK regulator for using contracts that allow them to hike prices and terminate services without notice.
Three providers of cloud services, Dixons Carphone, JustCloud and Livedrive, agreed to improve their terms, the Competition and Markets Authority said on Friday in a statement.
Several other companies will have to make similar changes, the watchdog said, but they did not identify them.
While people find cloud services useful, the CMA “also heard some complaints resulting from unfair terms in contracts,” Nisha Arora, the authority’s senior director for consumer issues, said in the statement.
“If left unchanged, these terms could result in people losing access to their treasured possessions or facing unexpected charges.”
Cloud storage offers a convenient means of storing family photos, music, films and other important documents, and to access them from any device, the CMA said.
About three in 10 people in the UK use such services, mostly for free, from their smartphones and tablets, said the regulator.
This is true for the likes of Google’s Drive or Apple’s iCloud, said Cecilia Parker Aranha, project director at the Competition Markets Authority.
The three providers that have agreed to change their contract terms today weren’t necessarily the worst offenders, but were of particular concern to the CMA because they offer standalone cloud service storage products for which they charge consumers for any level of storage, Ms Parker Aranha said.
In a fast 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,” Ms Arora said.
© 2016 Bloomberg L.P
