Instagram's new terms of service, under the heading Rights, says the following: 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 username, 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.
In short, advertising you already see on Facebook, such as an ad showing a friend who liked a certain product on Facebook, is headed to Instagram. And Instagram photos may also end up being used for ads on Facebook.
It's not clear what form these ads might take. I'm guessing that if, for example, you take a photo of a can of Coca-Cola, Instagram could then let the Coca-Cola Company pay for that photo to feature prominently in your follower's streams or on Facebook.
Instagram's current terms, set to be replaced on January 16, also imply that your photos could be used for advertising: You hereby agree that Instagram may place such advertising and promotions on the Instagram Services or on, about, or in conjunction with your Content.
Facebook already uses your name and profile picture for advertising, but the social network does allow you to opt out of using your likeness for advertising in its privacy settings.
Ads aren't ads, unless they are
Perhaps more concerning is that ads using Instagram photos don't necessarily have to be identified as ads. You acknowledge that we may not always identify paid services, sponsored content, or commercial communications as such, point three of Rights under Instagram's updated terms say.
Hey, kids: You said your parents said it's OK
In a moment of let's cover our butts legalese, Instagram also says that anyone under 18 who is using Instagram is assumed to be doing so with their parents permission. And, as such, their information can be used in an ad. If you are under the age of eighteen (18)...you represent that at least one of your parents or legal guardians has also agreed to this provision (and the use of your name, likeness, username, and/or photos (along with any associated metadata)) on your behalf, Instagram's new terms say.
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