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UK consumer protection regulator identifies unfair cloud services terms

Sue McLean, Morrison & Foerster | June 3, 2016
Some cloud contracts may violate UK consumer protection law

In terms of next steps, the CMA states that certain named cloud providers have already given commitments to the CMA to develop fairer terms. The CMA will continue to engage with a number of other providers in the coming months. The CMA will also share its findings with the UK government and the European Commission as part of wider policy initiatives on consumer terms and conditions.

Conclusion

This is not just a question of compliance. As the CMA points out, having clear and fair terms can help providers prevent disputes and reputational damage. Moreover, in a competitive market, more reasonable terms may help differentiate a provider from its rivals. There is a renewed focus on consumer protection and trust in this fast moving digital age and providers need to keep up with the direction of travel.

 

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