“To help us deliver interesting paid or sponsored content or promotions, you agree that a business or other entity may pay us to display your username, likeness, photos (along with any associated metadata) and/or actions you take, in connection with paid or sponsored content or promotions, without any compensation to you.”
Basically what this means is that the photos you upload, the meta-data like the location you uploaded it from and etc. can be used to help generate ads on Instagram or Facebook, similar to how Facebook generates ads based on the Pages that you like and so on. Instagram has also updated its privacy policy which now states that Instagram can share your information with companies that Instagram is part of, i.e. Facebook, which means that not only will your Likes on Facebook help the social network figure out what sort of ads to serve you, but now your posts on Instagram will contribute to that as well. What do you guys think of these updated policies?