Instagram recently announced several changes to the terms of service that will allow the company to use pictures in advertisements without notifying or compensating users, and to disclose user data to Facebook and to advertisers. Instagram also proposed that the parents of minors implicitly consent to the use of their childrens' images for advertising purposes. The changes The changes will take effect January 16, 2013, and will not apply to pictures uploaded before that date. Instagram’s parent company, Facebook, is under a 2011 consent order with the Federal Trade Commission that that prohibits the company from changing privacy settings without the affirmative consent of users or misrepresenting the privacy or security of users’ personal information. Using an individual’s name or likeness for commercial purposes without consent is also prohibited in most states. EPIC had recently urged Facebook users to vote for "Existing Documents," warning that under the changed terms of service, Facebook would loosen privacy controls and that would impact Instagram. For more information, see EPIC: Facebook and EPIC: FTC.
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by Ryan Calo, A. Michael Froomkin,