Instagram says no plans to incorporate user photos in ads

SAN FRANCISCO Tue Dec 18, 2012 5:21pm EST

SAN FRANCISCO Dec 18 (Reuters) - Instagram, the popular photo-sharing service owned by Facebook Inc, said Tuesday it has "no plans" to incorporate user photos into ads in response to a growing public outcry over a new privacy policies unveiled this week.

Instagram CEO Kevin Systrom said in a blog post that users had incorrectly interpreted Instagram's revised terms of service, released Monday, to mean that user photos would be sold to others without compensation.

"This is not true and it is our mistake that this language is confusing," Systrom said. "To be clear: it is not our intention to sell your photos. We are working on updated language in the terms to make sure this is clear."

Facebook bought the fast-growing photo service - now with 100 million users - earlier this year in a cash-and-stock deal valued initially at $1 billion. The transaction closed in September at $715 million, reflecting the recent decline in Facebook shares.

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