Instagram, Social Media and the Opt-Out Economy

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If you follow any kind of tech or social media news, you’ll know about the announcement from mobile photo app Instagram and its new Terms of Service that come into play on January 16.

If you haven’t seen any of the stories, the main gist of it is this:

  • Instagram’s owners, Facebook, will have the perpetual right to license all public Instagram photos to companies or any other organization, including for advertising purposes.
  • Ads may or may not be disclosed to the user.
  • A business may take your uploaded photo, use it in an ad, and not have to compensate you.
  • If you continue to upload images after January 16 and then decide to delete your account, your images can still be sold by Facebook as their property.

While there are some questionable inclusions on these new terms – I’d love to hear what the FTC has to say about non-disclosure of ads, which completely contradicts their edicts – it’s the last one that is the most concerning, since it enforces my view that we’re now part of the opt-out economy.

Whatever Happened to Permission Marketing?

In 1999, author and marketer Seth Godin published the seminal Permission Marketing. While the ideas in the book weren’t completely new, it was a wake-up call to marketers and businesses everywhere.

Instead of spamming people with crappy marketing messages they didn’t want, and invading email inboxes with newsletters they weren’t subscribed to, a new best practice emerged – let the people choose what they subscribe to, and what messages they received.

Since then, various laws have come into place to protect consumers – the CAN-SPAM Act covers all commercial messages, while the U.K. introduced the Privacy and Electronic Communications (EC Directive) in 2003, requiring opt-in for all email marketing campaigns.

So far so good, right? Except in today’s digital landscape, where it seems we’re moving more towards the opt-out economy versus the opt-in one we fought so hard to create and support.

Social Scoring and Signing In Before You Can Leave

For most social networks – Facebook, Twitter, etc., – you still use the opt-in process. So, I need to physically sign up to use Twitter’s platform if I want to tweet. For the most part, this is how social platforms work. Then social scoring arrived and opt-out seemed to be the new opt-in.

The most well-known of the social scoring platforms, Klout, created a profile for you whether you liked it or not. If you had a public Twitter account, you had a Klout account.

If you didn’t want to partake in Klout’s promotion of you to their advertising partners, you actually had to create an account with Klout just to delete it, completely going against the idea of permission marketing and consumer wishes.

Klout’s reasoning is that they’re only accessing information that is publicly available, and that’s true. The main problem is your Klout score can impact how you’re perceived by companies and other online users – and you have no say in that, unless you sign up to try and play that system.

However, the bigger picture here is the question of opt-out versus opt-in, and Klout’s successes (millions of users and supporters and thousands of partners) seems to indicate opt-out can be a workable process.

The Instagram Question

Which brings us back to Instagram’s recent policy announcement. While it could be argued that unless you pay for the product you are the product, Instagram’s wording goes way beyond that. Consider this:

  • When you share photographs on Instagram that include other people, and that photo is then sold or used by an Instagram partner in a promotional campaign that goes against the beliefs of your friend in the picture (she supports PETA and Instagram use your image in a fur coat promotion), your friend can’t do anything about it because it’s your photo.
  • If Instagram has the right to access your friends’ details on Facebook during the sign-in process, you’ve essentially sold their details to Instagram’s partners and they may never know that until they start getting bombarded with partner ads.

These are just two areas that the new policy could potentially be used. Not only can you not opt-out of this happening if you stick around after January 16, your friends (who may not even be on Instagram) have even less of a chance to opt-out of their likeness being used for promotional gain.

Here’s another angle to take:

I get a picture taken with you. I work for a brand, and I use Instagram. I tell Instagram all pictures are my property and all people in them agree to be shared. Then I, as the brand employee, put that picture up with a promo for Westboro Baptist Church (let’s say they’re a client), with the caption “We support the ban on gays” next to a book entitled “Why The Real Family is a Man and Wife Family”.

By definition, and your inclusion in that picture, you now endorse both Westboro Baptist Church and are anti-gay. Would you be happy with that possibility?

Understanding this, and seeing what could potentially happen, is the reason Facebook posts and news article comments are alight with concern from current Instagram users, many of who have said they will be deleting their accounts.

You could argue that we give up the right to any true privacy when we open up an account with these apps and, for the most part, you’d be right. When you use something for free that costs money to maintain, there needs to be some revenue option that kicks in.

The problem with the Instagram change, though, is that Facebook are essentially saying “You’re our new freelance photographer but we’re not paying you” as well as curtailing your basic right to hold on to your property when you leave a platform.

And it’s that last point that could well be the straw that breaks the Instagram camel’s back. Time will tell.

Update: December 18, 5.00pm EST – Instagram co-founder Kevin Systrom has updated the corporate blog with an explanation (though it doesn’t address the FTC/non-disclosed ad concerns).

Update: December 23 – A class action lawsuit has been brought against Instagram for breach of contract.

image: Casey Neistat

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About Danny

Danny Brown is Chief Technologist at ArCompany and an award-winning marketer and blogger. His blog is recognized as the #1 marketing blog in the world by HubSpot. Danny is also co-author of Influence Marketing: How to Create, Manage and Measure Brand Influencers in Social Media Marketing.

31 comments
Abdallah Al-Hakim
Abdallah Al-Hakim

This is one big reason why the last few family parties that I have attended, the host made it clear that he/she don't want pictures taken by guests of his kids to be posted on Facebook or other social networks. This latest rule from instagram will make these type of requests even more common. Instagram should work on enhancing their services through a paid model rather than increasing the mistrust between them and their users.

Danny Brown
Danny Brown

That seems like it could be the kind of approach we now need to take, Adballah, which is a shame and yet s sad reflection on our "growth" technologically...

Kevin Mullett
Kevin Mullett

In addition to the excellent points already made, I am particularly concerned about the licensing and rights nightmare this could potentially create.

Say I take a photo of @dannybrown:disqus at a conference and upload it to Instagram. No problem. Now Instagram takes and uses that photo for commercial intent. (Well that is what the legalese says) Whoa, now we have a problem. I don't have a model release from Danny and therefore I cannot transfer rights, that I don't have, to a third party i.e. Instagram for commercial intent. I didn't upload a model release, and there isn't a method to do that anyway. Who does Danny go after? Instagram didn't tell me not to upload images of people I don't have a release from, or worse minors. What if he is wearing Nike apparel in a Museum next to a work of art? Will they just avoid these image? I doubt it. A stretch? Maybe.

Stock photography sites don't just pass this off in a TOS and state if you upload it we can use it. They require model releases. In short, I've got a bad feeling about this.

Clay Morgan
Clay Morgan

I am curious though. Can not the same protections for journalists apply. Our photographers don't need anyone's permission to take a photo of anyone - including minors - on or from public property or at an event.

Advertising certainly muddies the water.

Even the photo is taken for news rather than public use? Hmmm. My photographer takes a photo in hopes it will add subscriptions or sell a few more papers. Isn't that commercial?

Now I'm getting a headache!

Kevin Mullett
Kevin Mullett

Editorial use is a special exclusion and does not require model releases where there is no expectation of privacy, though there are rules about singling a person out, especially if it may paint that person in poor light, which as I understand it is why those blurry images exist over peoples faces when they do a report about obesity or the like. (Wishy washy on that point) But people have a right to choose how their image is attached to commercial intent, i.e. to promote a product or service.

Your photographer isn't simply taking a picture for subscriptions, they are reporting on something that the photo represents. The product isn't the image, as it would be for art or stock.

Stock photography sites will accept certain types of imagery with people in it, without model releases, IF they are marked for editorial use only. No, NIKE cannot take a picture of your kid playing at the park with their shoes on and use it on a billboard without your consent, and potential compensation. But the compensation part is between you, their guardian, and them.

Cision NA
Cision NA

Great points, Kevin! Working with user-generated images is difficult and while I understand they want to make a profit, that seems like a direction they may want to avoid. In related news, the Associated Press just announced that Instagram won't use user photos in ads: http://bit.ly/V3Yh6u

Props to them for listening to their users.

And @dannybrown:disqus - thought-provoking post. I appreciate that you went past the basics and really delved into the possibilities the new wording permits.

Have a great night, everyone!

Best,

Lisa

Danny Brown
Danny Brown

EXACTLY, Kevin! A public photograph for personal use is one thing, but now commercial gain comes into play without authorization? There's something that doesn't stand with that particular part of the new terms, and I just can't see how Facebook can get past not having release forms signed.

Thanks, sir!

M. Edward (Ed) Borasky
M. Edward (Ed) Borasky

Seth Godin's "Permission Marketing" never actually existed. Seth himself has never made a nickel by anything other than some form of interruption marketing.

Danny Brown
Danny Brown

Hmm, I've never received anything from Seth that I haven't signed up for. Curious for your examples?

Sam Fiorella
Sam Fiorella

Bigger picture: The more we engage online, the more our lives become public domain and I'm not sure that people *really* care. Privacy is not as big a concern we think it is - or should be. Most people (if not all) don't read the ToS they agree to when joining the multitude of social platforms they join. They gladly exchange their privacy for their right to post pictures of their lunch.

How many people complained and still complain about Klout's practice of profiling them without their consent? The majority of those same people have not opted out, check the scores frequently and continue to game the system to improve those scores. We called out the fact that our kids were being profiled by Klout (due to Facebook connections) without our consent but did that create a mass exodus and opting out of Klout? No.

Not sure what the tipping point will be, but until then there will be a few of us calling out shite business practices like this while the sheep continue to flock to them.

Danny Brown
Danny Brown

What I find interesting about the Instagram move, and the current "backlash", is it's not just coming from social media wonks like you and I - it's "everyday" users. Instagram enjoyed being a true "app for the people", if you like - no need to be on social media, no need to worry about brands, etc., just a simple interface to share photos with your friends.

The fact I'm seeing so many friends of friends react badly to this suggests maybe that tipping point is closer than we think, mate.

AmyMccTobin
AmyMccTobin

What I find most interesting is their horrific PR... there is SO much misinformation out there - why not be prepared by communicating, clearly, BEFORE the change.

AmyMccTobin
AmyMccTobin

Only what seems like a hundred cases:) I still don't believe all of the crap fed to us in that last one, but I certainly can't prove anything. Perhaps these juggernauts don't pay any mind to PR planning because they just don't care, which is asinine, since there is always a shiny new platform waiting in the wings ready to steal their users.

Danny Brown
Danny Brown

Does it remind you of anything recent..? ;-)

Bill
Bill

I knew you would have a post about this Danny!

Let's be real here, while often time not much is done, basically what they are saying is, "we can, and we just might" use your images, without attribution, in anyway we deem we want to, whether you like it or not, even if you stop using our service and delete your account. That begs to question how many other services actually do not "remove" information when an account is deleted. Oh wait, most do NOT.

Danny Brown
Danny Brown

I recall seeing an article where Facebook came under scrutiny for this practice. Klout has also been showing to retain profiles, hidden from public view except by the occasional glitch, of folks that have removed themselves. Like you say, Bill, how many do we think we're okay with and are far from it?

I have no real issue with companies and platforms using me as a guinea pig, but I do draw the line at family and friends where they have no clue they're even being used. Judging by the reaction of "non-social media folks" on Facebook and elsewhere, it seems the general public are starting to look more at these kinds of practices.

We can but hope.

Bill
Bill

True that, Danny. I also have an issue with the willingness to use minors' information, photos etc. with the expectation that the teenager alerted parents to the ToS and the parents explicitly agreed to the ToS. That, to me, is the more damning situation of the whole, followed by the fact they retain it even if you opt-out/disagree/delete the account.

Dave Jones
Dave Jones

The terms are a little muddy and I suspect will be clarified. They have been way too slow in dealing with this backlash and have allowed the perception of these changes to be written by people who aren't lawyers or who know what's intended. While there is a worst-case here, there is also the likelihood that similar terms must be in place to allow for a brand to pay for a promoted hashtag in the same way brand's pay for sponsored stories on Facebook.

There's more to come on this, I'm sure. But as usual, social sites seem to be terrible at communicating changes relating to monetization.

Danny Brown
Danny Brown

I think the biggest issue is the right to use an image of an association without permission, even if you've deleted your account to protect your family/friends. And, as @74b9750088fafaa8cc595890a16f416e:disqus mentions in his comment, the non-disclosure is also a red flag that seems a huge oversight on Facebook's behalf.

I guess time will tell, since I'm no lawyer. ;-)

remarkablogger
remarkablogger

Woops, meant to add this also: these kinds of terms of service already exist in many services we're using, but we never read them or didn't care. It's so widespread, in fact, that it kind of boggles my mind that there's an outcry over this. Even though these kinds of "we actually own everything you do on our service" kind of TOS exist, in reality not much is ever done with the users' content.

That this goes against the nature of permission marketing and against the strict double opt-in nature of email lists speaks to the need for a new look at privacy laws. Unfortunately, laws in favor of the consumer seem like en endangered species.

Danny Brown
Danny Brown

Completely agree on the "you are the product" line of thinking, mate, when it comes to me. The whole "we can use your friends and family with products and partners we like" approach, though, doesn't sit well. I'm also really curious about that non-disclosure statement - I wonder if we'll see a redaction of that, since it is essentially breaking the law?

remarkablogger
remarkablogger

If you're not paying for it, you are the product.

iconic88
iconic88

time will tell how many opt out of Instagram and Facebook. The amount of investment many pour into these vessels may be too compelling to leave. The thirst to share and connect with our friends and family will invariably bring us back to these social wells.

Danny Brown
Danny Brown

I think that's why Facebook has lasted so long, mate. Yes, we all complain about their changes and updates, etc, yet we don't leave. I'm curious about the Instagram move, though - are Facebook testing such strict changes with that platform to gauge reaction before they implement it into the wider Facebook ecosystem?

iconic88
iconic88

PS: cheers to Christmas to you and yours mate! may you enjoy a dram of Scotland's finest ;)

iconic88
iconic88

haha...you've hit it on the nail Danny me thinks ;) Like you I share this sentiment, "Facebook testing such strict changes with that platform to gauge reaction before they implement it into the wider Facebook ecosystem"...I think too that it's a case of also bringing Instagram's TOS in line with their own policies so they can tap into that as another revenue stream. Simply part of the Integration process.

Dave Van de Walle
Dave Van de Walle

Onerous terms of service are nothing new; if memory serves, one of the photo-sharing sites back in the day said "hey, we own your photos, nyah nyah." This was before the proliferation of life-sharing sites like Facebook and Instagram, so it wasn't met with as much outrage.

But you're right - we asked to jump into that pool. Now, we're already in a few pools, and the FB folks want to own the water, or use our water without our having a say.

Danny Brown
Danny Brown

I know a lot of my friends are already deleting and locking down what they even have available on Facebook - it'll be interesting to see how this pans out in the longer run.

AmyMccTobin
AmyMccTobin

Long live Flickr is m first thought. My second: glad I've decided to get more into Pinterest. My question: has Facebook had a lobotomy? Why on earth would this be ok?

Danny Brown
Danny Brown

Perhaps they're testing reaction to stricter policies before enforcing them across the wider Facebook platform?


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