I posted something similar on here[1] about how Instagram cannot sell its users photos and what they're actually doing is trying to monetize similar to how Facebook does Sponsored Posts.
Instagram's terms of service stated that was their intentions:
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.
And "Section 106: Exclusive rights in copyrighted works aka. 17 U.S.C. ยง 106"[3] essentially states Instagram cannot sell its users photos and it cannot use its users photos and alter them in any meaningful way.
The problem was how they communicated the change and they've admitted that too[2] although they've started to fix this with this blogpost and will continue to communicate this.
Instagram's terms of service stated that was their intentions:
And "Section 106: Exclusive rights in copyrighted works aka. 17 U.S.C. ยง 106"[3] essentially states Instagram cannot sell its users photos and it cannot use its users photos and alter them in any meaningful way.The problem was how they communicated the change and they've admitted that too[2] although they've started to fix this with this blogpost and will continue to communicate this.
[1] http://news.ycombinator.com/item?id=4939650
[2] https://twitter.com/instagram/status/281133360833773568
[3] http://www.copyright.gov/title17/92chap1.html