“To help us deliver interesting paid or sponsored content or promotions, you agree that a business or other entity may pay us to display your user name, likeness, photos (along with any associated metadata), and/or actions you take, in connection with paid or sponsored content or promotions, without any compensation to you.”
CNET shared a simple example: “That means that a hotel in Hawaii, for instance, could write a check to Facebook to license photos taken at its resort and use them on its Web site, in TV ads, in glossy brochures, and so on — without paying any money to the Instagram user who took the photo.” Essentially, brands will be able to pay Facebook/Instagram to use specific photos for promotional use without giving credit or paying the individual user who snapped and uploaded the photo.
The updates and changes released will go into effect January 16, 2013 and will not apply to photo content shared before this date. There is no way to “opt out” of the changes unless the Instagram account is deleted.
What does this mean for brands?
- Tighter integration and shared data with Facebook. Instagram and Facebook will now share information with each other in order to “build better features, fight spam effectively and discover system issues more quickly.” Again, this also can involve sharing data for advertising purposes.
UPDATE: Instagram responded with a post on its blog.
Read more here:
- Instagram Blog - Privacy and Terms of Service Changes on Instagram
- CNET - Instagram Says It Now Has the Right to Sell Your Photos
- Edelman Digital - Facebook Acquires Instagram: Brand Implications