Bottom Line for users that do not want their photos that they store online to share with friends or family, via Instagram, sold to be used by anyone Instagram decides to sell them to, is to delete your Instagram account before January 16, 2013.
Other services with less invasive policies are linked at the bottom of this post.
Under the new policy, Facebook claims the perpetual right to license all public Instagram photos to companies or any other organization, including for advertising purposes, which would effectively transform the Web site into the world's largest stock photo agency. One irked Twitter user quipped that "Instagram is now the new iStockPhoto, except they won't have to pay you anything to use your images."
"It's asking people to agree to unspecified future commercial use of their photos," says Kurt Opsahl, a senior staff attorney at the Electronic Frontier Foundation. "That makes it challenging for someone to give informed consent to that deal."
NYT's Bits lists all the changes in the policy together:
1. Instagram can share information about its users with Facebook, its parent company, as well as outside affiliates and advertisers.
2. You could star in an advertisement — without your knowledge.
3. Underage users are not exempt.
4. Ads may not be labeled as ads.
Some or all of the Service may be supported by advertising revenue. 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.
Taking a popular free service and attempting to turn it into a moneymaker is not wrong, in fact it is part of the free market system and should be encouraged, but the methods Instagram is using to go about it are highly controversial.
Instagram owners, Facebook, could have offered an opt-out for users or even for specified photos uploaded by users to prevent pictures of their children, for example, from being used in advertisements, but they didn't.
Wired details how to upload your photos and then delete your Instagram account:
If the new terms are tough for you to swallow, there is a way to quickly remove yourself from the many-filtered ways of Instagram.
First you’ll want to download all of your photos. Instaport will download your entire Instagram photo library in just a few minutes. Currently the service only offers a zip file download of your photos, although direct export to Flickr and Facebook are in the works.
Once the photos are downloaded, you can upload them to another photo service. Some of the Gadget Lab staff is fond of the new Flickr app and service.
After you’ve removed your photos from Instagram, you can quickly delete your account and pretend you’ve never even heard of Lo-Fi filter.
Once users have downloaded their photos from Instagram, they can upload them to a variety of other services so they can share with family and friends online.
Once a photo is made public it is out there on the web for anyone to see or to use.