Tuesday, December 25, 2012

Instagram hit with proposed class-action lawsuit

class-action lawsuit

Suit claims that not only is Instagram making a “grab for customer property rights” with tweaks to its terms of service, it’s also attempting to cover its tail by prohibiting users from seeking legal relief.

Instagram’s attempt to change its terms of service has inspired not only a user backlash but also– now — a proposed class-action lawsuit.

The updated terms of service, introduced last Monday (though Instagram has sincebeckpedaled), would “transfer valuable property rights to Instagram while simultaneously relieving Instagram from any liability for commercially exploiting customers’ photographs and artistic content, while shielding Instagram from legal liability,” reads the suit, filed in U.S. District Court in San Francisco on Friday, and first reported by Reuters.

Not only is Instagram making a “grab for customer property rights,” the suit claims, it’s also attempting to cover its tail by prohibiting users from seeking legal injunction against the service, or indeed — through a no-class-action arbitration clause — any legal action aside from small-claims remedies. The new terms would also “artificially limit the statute of limitations for all claims against Instagram to 1 year,” the suit says.

The suit says the plaintiff “is acting to preserve valuable and important property, statutory, and legal rights” before legal action is “forever barred by adoption of Instagram’s New Terms.”

Instagram had said the new terms of service would go into effect January 16 and that users could not opt out but could delete their accounts before the deadline. The suit takes issue with that last point, saying customers could cancel, but that in doing so they’d forfeit the right to their photos. “In short,” the suit says, “Instagram declares that ‘possession is nine-tenths of the law and if you don’t like it, you can’t stop us.’”

Instagram parent Facebook told Reuters the “complaint is without merit and we will fight it vigorously.”

Here’s the filing, which was posted by AllThingsD’s Mike Isaac:

Instagram Lawsuit

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Instagram hit with proposed class-action lawsuit

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