The news comes just four months after social networking site Facebook bought the photo-filtering app for a record $1bn, and the changes mean that Facebook will be able to distribute any content posted on Instagram without paying the user royalties.
The new terms of service reveals that not only your photos, but your name, location and comments could be sold by Facebook to third-parties.
Earlier this month Instagram CEO Kevin Systrom said that the company always had users interests in mind.
"I think what people have to remember is that we always have the best intentions in mind for everyone and data sharing is not something that we focus on in the morning, when we wake up and we get to work, we're not like, 'how do we get data to go from one place to the other?', we're simply trying to make the services better."
While many are angered by the new terms of service, others point out that Instagram is a free service and is therefore under no obligation to prioritise users privacy.
Written and presented by Alfred Joyner