Whether we are snapping candids of our dinners or showing off our pets’ new haircuts, we seem to be unable to stop sharing our photos on Instagram (after applying “hipster” filters, of course). Since its launch in 2010, the social networking service has exploded with popularity with more and more users signing up daily.

Recently, Instagram updated their terms of service, stating that “[users] agree that a business or other entity may pay us to display your username, likeness, photos…and/or actions you take…without any compensation to you.” With such a large number of users, it’s no surprise that Twitter and Facebook exploded with people voicing their objections.

Firstly, we have to acknowledge that Instagram, while free for download, is indeed a business; advertising is an essential part of its growth (which they emphasize in their blog post here). Whether their advertising is an example of ethical marketing is walking a fine line. For example, Instagram could potentially be letting advertisers on Facebook use information that users have shared on the service. And, according to the NY Times, you could become a star without your knowledge (breaking many state laws), if Facebook or Instagram decide to include your photos in their next ad. Other than the obvious privacy concerns, there are also issues concerning exploitment. Underage users would not be exempt from these changes in terms. So, is it ethical to use others’ work to increase your own revenue without crediting them? Or is it violating privacy to share users’ information with outside sites without their knowledge?

Instagram needs to watch its next steps very carefully, as it could lead to serious consequences on its brand image. Maybe they should look to Google, who took a more carefully studied route of monetizing their popularity and did it without angering users along the way.

http://www.marketingmag.ca/news/marketer-news/chatter-instagrams-tos-crisis-68635
http://instagram.com/legal/terms/
http://blog.instagram.com/post/38252135408/thank-you-and-were-listening

http://articles.washingtonpost.com/2013-01-16/business/36384825_1_instagram-function-photos-new-terms