Today Instagram introduced an updated Terms of Service and Privacy Policy which will go into effect on January 16th.

The updates will help Instagram better collaborate with Facebook, which acquired the photo-sharing service earlier this year. While nothing has changed about who can see your photos, the real difference lies in what it does with personal data.

“Our updated privacy policy helps Instagram function more easily as part of Facebook by being able to share info between the two groups,” stated Instagram. “This means we can do things like fight spam more effectively, detect system and reliability problems more quickly, and build better features for everyone by understanding how Instagram is used.”

It’s not surprising that more data would be shared between the two companies. What’s interesting is that the new Terms of Service also includes language suggesting that an advertising product similar to Sponsored Stories could be in the app’s future. The document reads:

“Some or all of the Service may be supported by advertising revenue. 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.”

Depending how your company feels about Sponsored Stories, this could be a good thing for advertisers. Aside from this, not much will change about how you use Instagram on a daily basis.

You can read through the new privacy policy in detail on Instagram’s legal page.

[via: Inside Facebook, Image credit: Moyan Brenn]