Facebook's Instagram Catches Hell From Users on Privacy Changes

Tickers in this article: FB YHOO

NEW YORK (TheStreet) -- Facebook (FB) , known for upsetting users with constant changes to its policies, has another headache to deal with.

Instagram, the photo-sharing site acquired by Facebook this year, plans to change its terms of service Jan. 16 and allow photos to be used in advertisements on Instagram and potentially on Facebook. The person who took the photos wouldn't receive compensation for what amounts to their property, while Instagram and Facebook would.

Instagram users are justifiably outraged, and some have deleted their accounts.

Under the heading "Rights," Instagram's new privacy policy 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."

Many are up in arms over the terms of service change, as privacy on the web enters a different dimension.

I did an informal poll on Facebook and Twitter regarding the privacy changes, and 75% of those surveyed on Twitter said they would delete their accounts, had already done so or would do so if the terms weren't changed back. The results on TheStreet's Facebook page showed a similar result.

Celebrities have already taken to voicing their displeasure. Tiffani Amber Thiessen of Saved By the Bell fame tweeted she'll be deleting her account. "Really sad to have to end my luv 4 @instagram. Will be deleting my account due 2 their ridiculous new terms," Thiessen wrote.

Other companies may benefit, including Yahoo's (YHOO) Flickr, which recently went through a significant update and redesign.

Interested in more on Facebook? See TheStreet Ratings' report card for this stock.

-- Written by Chris Ciaccia in New York

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