Instagram Selling Your Photos in 2013: Terms of Service on Jan. 16 To Let Outside Companies Use All Photos in Ads with No Compensation

Instagram users may have an unpleasant surprise when the new terms of service go into effect on Jan. 16.

The new agreement gives Instagram, now owned by Facebook, the right to use member photos in advertisements without compensation, adding to fears about privacy concerns and use of content uploaded to social networking sites.

The problematic portion of the terms of service says, "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."

That means that users photos, information and activity on Instagram could appear in advertisements displayed to other users, without necessarily being identified as advertisements. A similar program rolled out on Facebook, but users were able to opt out.

Since all photos posted on Instagram are affected, even people without Instagram accounts could appear in the ads if someone takes a photo of them and posts it on the sharing service.

There is concern among Instagram users that the association of their usernames or pictures with an advertisement could make it look like they endorse a product or service they've never even heard of. Indeed, that confusion actually makes the advertisements more effective.

In addition, Instagram will be able to share users information and interests with its parent company, Facebook, a move that might not sit well with people who intentionally stopped using Facebook, especially if that action was taken over privacy concerns.

The new terms of service apply to all Instagram users, even those under the age of 18. Users need to be 13 in order to have an account, but there is no exemption for young users.

And there is no way to opt out of the new terms of service. If the new policy is bothersome, the only recourse is stop using Instagram.

The new policy only affects photos uploaded after Jan. 16, so post freely until then.