2012 was a big year for Instagram—that is, until it took a turn for the worse after releasing its new terms of service. Numerous users, including celebrities, have voiced negative opinions about the change in service. And now, it seems, Instagram is going to court.

Last week a complaint was filed in a San Francisco federal court on behalf of Instagram user Lucy Funes. She believes the updated TOS breaches contract and California business law.   

An excerpt from Funes' complaint appears below:

“If customers do not agree with Defendant’s scheme, they can cancel their profile with Instagram. However, upon canceling, customers forfeit all right to retrieve the Property that was previously entrusted to Instagram, which retains rights thereto in perpetuity. In short, Instagram declares that ‘possession is nine-tenths of the law and if you don’t like it, you can’t stop us.”

The new TOS does not take effect until mid-January but it includes a mandatory arbitration clause “forcing users to waive their rights to participate in a class action lawsuit except under very limited circumstances." The suit was filed now since the current TOS contain no such liability shield.

A Facebook representative spoke on the matter with GigaOm“We believe this complaint is without merit and we will fight it vigorously.”

[via GigaOm]