Canadian Perspectives on Cloud Computing and Consumers

Author

Anthony Hémond, Marcel Boucher

Organization

Union des consommateurs

Published

2011

Summary

Information is becoming more and more virtual. People can now use applications online instead of installing them on their computers. They can also save documents on servers in third world countries, and access them anywhere in the world. All of these functionalities are called cloud computing applications. Certain cloud computing services are currently major players on the Internet.

In Canada, certain laws have been adopted to protect consumers. Can those laws apply in the cloud, to those various cloud computing service contracts? If so, do the terms and conditions of those contracts fully comply with Canadian legal provisions to protect consumers?

This study includes an extensive legal analysis of cloud computing contracts. This analysis of various clauses common to cloud computing services enables us to assess their validity under civil law, common law, consumer protection laws, the Copyright Act and privacy laws.

Some of the clauses of the cloud computing contracts examined are shown to violate consumer protection laws or common law principles. Some of the copyright clauses are excessive and vague. Some cloud computing contracts do not comply with Privacy Act principles.

The research also focuses on the approaches and solutions adopted by certain foreign jurisdictions to address some of the issues raised by cloud computing.

In addition to a few recommendations inciting merchants to improve their practices, Union des consommateurs recommends legislative amendments that could solve many of the problems identified, mainly with respect to privacy and consumer protection.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database