Caveat Consumer? – Consumer Protection and Cloud Computing Part 1 – Issues of Definition in the Cloud
29 Pages Posted: 18 Jan 2013 Last revised: 5 Jul 2015
Date Written: January 18, 2013
Abstract
In this first paper, we explore a number of core issues of definition relating to the application of consumer protection in the cloud environment, prior to looking at which consumer protection laws have application and how they could in fact be applied to standard terms and conditions and cloud services in Part 2.
First, we address the important question, what is a consumer for the purposes of consumer protection law in the context of cloud computing? We then examine the issue of mixed cloud use. Cloud services are often increasingly mixed in nature i.e. it can often be both for personal and for professional, or business, purposes. Such mixed use complicates the application of consumer protection laws in many instances, for if the use is more professional than personal, the user may well not be considered a consumer for the purpose of the law. In addition, the converse is equally true: businesses that use cloud services may also use them in a personal way, the demarcation being often equally unclear. These two phenomena have major implications regarding the assessment of responsibilities of cloud service providers under consumer protection law. In addition, cloud services, especially those that are free, may often be used in relation to activities undertaken during the foundation of a business. Again, such “foundational” use by a private individual makes identification of a legal 'consumer' difficult.
Finally, the question of whether cloud computing companies are providing a good, a service or something sui generis requires addressing, because the correct categorization of cloud computing in this regard has implications for the types of consumer protection laws that will apply.
Keywords: cloud computing, law, technology, consumer protection
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