More and more people are turning to the cloud for both personal and business use. People are starting to trust it more with important documents and photos.
Around 3 in 10 adults in the UK now use cloud storage to store various personal items. This number is only growing as the popularity of online storage continues to grow. With most services free at a basic level, it is becoming an easier, quicker way to store and transfer files and photos. While trust seems to be on the increase, a new study found that this isn’t always the case.
Investigation reveals cloud storage concerns
The Competition and Markets Authority (CMA) launched an investigation and found that providers could potentially be breaching consumer law. The competition watchdog has found that cloud 
storage providers have been accused of treating customers unfairly and causing unnecessary amounts of risk concerning their personal documents.
The main issue appears to surround contract terms because providers can change terms at any time without giving notice. Providers can terminate or suspend accounts without notice or reason. Renewing a contract automatically could also be in breach of consumer law.
Nisha Arora, senior director of consumers at CMA said: “Cloud storage offers a convenient means of keeping family photos, favourite music and films and important documents safe, and accessing them quickly from any device.
“Our review found that people find these services really valuable. However, we also heard some complaints resulting from unfair terms in contracts. If left unchanged, these terms could result in people losing access to their treasured possessions or facing unexpected charges.”
After the investigation, JustCloud, Livedrive and Dixons Carphone all agreed to providing fairer terms for their customers. CMA urges similar providers to do the same.
Arora said: “In this rapidly 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. We welcome the fact that a number of companies have already agreed to change their terms, and expect to see improvements from other companies.”
In the meantime, they advised cloud customers to make sure they are aware of all necessary information before signing up to any providers.
Underlying concerns with cloud storage
This study is enough to bring up the same old concerns that people have with cloud-based systems. The two main concerns are usually security and reliability. People need to be able to trust that their documents are in safe hands, particularly if they are using online storage as their only method of backing up.
Some people just don’t trust the cloud to look after their important documents should there be a loss of data or hacking. The idea of their documents or photos essentially being in someone’s hands and under their responsibility is worrying to many people.
However, this study does not necessarily mean that cloud storage is bad and should be avoided. It just means that the terms need to be more clearly defined or amended so that they are in the best interests of the customers.