Consumer Protection in the Cloud
This chapter assesses consumer protection in the cloud. The majority of businesses seem to have recognised the EU consumer rights regime as setting out the standards of good business best practice which a good business should achieve, and so reflect that regime in their terms and conditions. But a minority of online sellers and suppliers do not, and because the likelihood of consumers going to court to enforce their individual rights is so low, this minority group is unlikely to mend their ways. This has led to an increased focus on using public law rather than private law to enforce compliance with EU consumer rights. The EU Unfair Commercial Practices Directive (UCPD) forbids misleading practices by businesses, and online businesses whose terms or practices deny the individual rights granted by law to consumers are increasingly facing enforcement action. The current focus is on well-known social media and sharing economy services, because success here sends a strong message to other, less visible, service suppliers. Cloud services are at present low on the list, partly because many consumer-facing cloud service providers are already largely compliant. The consumer service providers who are most at risk are those who are struggling to transition from a 'free' business model to a paid one.