Question

What prompted Instagram to change their Terms of Service agreement in April 2012 when they were bought by facebook?

Critics reacted very negatively towards the change in the Terms of Service agreement. Do you think the change was an error in judgement on the company's part? Why or why not?

Was Instagram's response to the PR crisis in the change in Terms of Service appropriate? Why or why not?

How could Instagram have handled this situation differently? Do you think the changes to the algorithm will be sufficient to resolve the issue? Why or why not?

Answer 1

Q1) What prompted Instagram to change Terms of service in 2012?

            When Facebook purchased Instagram for $715 million it had gained access to its nearly 400 million user base who were under-monetized. Hence to gain greater commercial advantage from the existing user base, Facebook with the help of its law firms announced a change in Terms of Service with a deadline for users to accept the same or to de activate their account

Q2) Change an error in Company’s part?

            Legally the company was right in its part as it had every right to change its Terms of Service as a statement in its service agreement states that “the company deserves the right to change or modify its terms of services at its own discretion”. But from an ethical standpoint such a move is questionable because the social media companies are well-aware of the fact that most users don’t read through the service agreement and hence the point was added to the advantage of the company.

Q3) Instagram’s response to the situation:

            Following a backlash the company returned to its original terms of service. The clause that was misinterpreted as potential misuse of consumers’ photos was corrected and changed to the original content. The company also promised its users instead of gaining prior permissions for services or features not developed, the company would focus on completing the palns and then getting back to the user for explaining the same

Q4) Changing Algorithm-Useful?

            The aspect of changing algorithm is not a right solution. As done by Instagram there is a need to personally reach out to the user base and clarify them the misunderstandings that has created the uproar, the actions that are currently being taken and what systems are being put in place that such happenings do not occur in future