Business Contracts

Instagram's New Terms of Service Anger Users

Social media users are fuming over changes in the popular photo-sharing and social networking website Instagram's Terms of Service. The most talked-about change appears to give Instagram the right to sell users' photographs to third parties for use in advertisements: "...You agree that a business or other entity may pay us to display your username, likeness, photos..., and/or actions you take, in connection with paid or sponsored content or promotions, without any compensation to you." The backlash against that clause has been severe, but it isn't the only change Instagram made to its TOS. Beginning January 16, 2013, Instagram users will be obligated to arbitrate most disputes they have with the company and to waive rights to participate in a class action lawsuit or class-wide arbitration against Instagram, unless they opt-out of the arbitration clause in writing.

Read (and Draft) That Forum Selection Clause Carefully!

The Massachusetts Appeals Court has ruled that a party to a business contract could file suit in Massachusetts even though the contract specified that "jurisdiction shall vest in the State of Illinois." The Appeals Court held that the "jurisdiction shall vest" language is merely permissive and does not require that suit between the contracting parties be brought in Illinois. Boland v. George S. May International Company, No. 11-P-1300, slip op. (Mass.App.Ct. June 7, 2012).

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