The part in particular that has ruffled feathers deals with how Instagram will use people's photos, and other information, to better target ads to users. It can be found in section 2 and 3 under "Rights":
- 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. If you are under the age of eighteen (18), or under any other applicable age of majority, you represent that at least one of your parents or legal guardians has also agreed to this provision (and the use of your name, likeness, username, and/or photos (along with any associated metadata)) on your behalf.
- You acknowledge that we may not always identify paid services, sponsored content, or commercial communications as such.
All of which means Instagram will have the right to use your likeness, images, and meta data (location, etc) in advertisements for free. What's more, it won't even need to identify what is an ad and what isn't. The former shouldn't come as a surprise to many. Facebook, Instagram's owner, does the same thing but with Likes.
All of Instagram's recent moves point to the service looking to quickly turn a profit by any means necessary.
[via The Atlantic]