New Instagram terms of service, they can use your pictures in advertisments without consent or compensation [updated]
The only way to opt-out of this is to delete your Instagram account. Stay classy Facebook! If you want to delete your Instagram account, Wired has a how to article.
Via Techmeme and Instagram blog (on Tumblr so you can't leave a comment) which weaselly states that "Nothing has changed about your photos’ ownership or who can see them.". You own them, they profit from them, how convenient!
"... 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..."
Meanwhile, Mr Photo Ed in the Wired comments raises the question of how are they going to handle release forms for people who are included in pictures but are not the owners of the Instagram account?
More Reactions to the Announcement
Thomas Hawk opined on this new development and also pointed to a couple of interesting point-counterpoint blog-posts including photographer Robert Wagner singing some Cee Lo Green to Instagram after this development. (figuratively speaking, not an actual song).
On the counter-point front, Gizmodo perhaps decided to milk this development with a link-bait rant "Stop Whining About Your Personal Data on Instagram You Little Whiny Baby". On the other side of the argument, the mothership of Gizmodo, Gawker calls it absurd.
Maybe a Gloria-Allred-for-photographers needs to emerge, and whenever a company tries an anti-photographer picture/rights grab, they will get a high-profile lawyer suing them as soon as possible. Lawyers vs lawyers!