Consumer laws relating to cloud storage will be reviewed by the Competitions and Markets Authority (CMA).
The competition watchdog said that consumer concerns about price and service changes had led the regulator to examine the market.
The CMA’s review of the consumer law compliance found that a number of consumers were surprised by significant price increases and reductions to unlimited storage capacity deals. The watchdog also reported fears relating to the loss or deletion of some users data.
The review will examine ‘how widespread these practices are, whether they breach consumer law and how they are affecting consumers.’
According to the CMA 40% of adults in the UK take a cloud service of some kind. A number of mobile related companies have attempted to take a portion of the market in the last year.
Most recently O2 announced its Store & Share cloud service designed to offer its customers a ‘flexible’ cloud package.
CMA appeals to business
The watchdog said that it wants to engage with businesses as well as consumers about where cloud service providers are ‘working well for consumers’.
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 includeenforcement action using our consumer law powers, seeking voluntary change from the sector or providing guidance to business or consumers.’