Rackspace Escapes Punishment from Regulator ASA

Major cloud service company Rackspace was cleared of any wrongdoing by the advertising standards regulator the Advertising Standards Authority (ASA) after a recent advertisement.

The complaint was made to the ASA by an unnamed individual after a sponsored search advert from Rackspace declaring the company could provide 100% uptime guaranteed. Supposedly, the advert was misleading and the unnamed party didn’t believe it was realistic to have a 100% uptime guarantee on any product.

Rackspace, however, put its money where its mouth was and declared it would reimburse any customer who didn’t have 100% uptime. It worked and the company escaped any punishments from the ASA.

It utilised its Service Level Agreement (SLA) to successfully fight its case. The SLA read Rackspace would provide 100% of uptime and anybody who didn’t would receive suitable compensation corresponding to the amount of downtime experienced.

The ASA released a statement on the situation saying: “We investigated the ad under the [Committees of Advertising Practice] Code… but did not find a breach.” They went on to comment: “The ASA considered that consumers would understand that the claim ‘100% Uptime Guarantee’ meant they would be compensated if the Rackspace Cloud network was unavailable…and concluded the claim…was not misleading.”

The vice president of legal international for Rackspace, Tiffant Lathe, spoke to IT Pro and said: “We are pleased with the ASA ruling today as Rackspace has industry leading SLAs and our goal is to deliver 100 per cent uptime to our customers.” 

Rackspace will be breathing a sigh of relief from the latest ruling as the case comes at the end of a steady stream of other legal cases currently afflicting the customer. And it’s not just Rackspace suffering from multiple lawsuits, some notable clients of the company have also been the victim of lawsuits.

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