The wildly popular photo-sharing site Instagram nearly caused a user revolt when it revamped its terms of service and privacy policy to suggest it could allow uploaded photos to be used in ads without users' permission.

The change — which was posted in dense legalese on its website Monday — sparked users to vow to stop posting their color-filtered, tilt-shifted photos to Instagram.

The New York Times first reported the story, and Internet outrage was swift. Disgruntled users were vocal; some called for boycotting the app and others have declared the death of Instagram.

Late Tuesday afternoon, Instagram softened its position.

"Our intention in updating the terms was to communicate that we'd like to experiment with innovative advertising that feels appropriate on Instagram. Instead it was interpreted by many that we were going to sell your photos to others without any compensation. This is not true and it is our mistake that this language is confusing. To be clear: it is not our intention to sell your photos. We are working on updated language in the terms to make sure this is clear," writes Instagram co-founder Kevin Systrom.

Systrom goes on:

"The language we proposed also raised question about whether your photos can be part of an advertisement. We do not have plans for anything like this and because of that we're going to remove the language that raised the question."

Here's the original offending paragraph from Instagram's new Terms of Service:

"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."

NPR's Steve Henn provides a good example of how it could have worked. Say you upload a photo to Instagram of you standing in front of a mountain holding some shiny new skis. That picture could have ended up as an ad for the mountain, the skis or a hot chocolate company. The new policy also seemed to say that even if you are not on Instagram your photo could end up as an ad if one of your friends uploads a shot of you. Henn notes that this advertising approach would very likely have run into some problems — especially in states like California where individuals have the right to control their image for commercial purposes.

A move to monetize should not be a huge surprise given that Facebook acquired Instagram earlier this year in a deal worth close to $1 billion. It makes sense that the publicly traded company wants to figure out how to justify the purchase to investors. The Atlantic notes that "the only way to get around the privacy problems inherent in advertising-supported social networks is to pay for services that we value."

Facebook users' content already shows up in advertising on the social network, but it lets users opt out if they don't want their photos to show up in ads.

The New York Times suggested that deleting your account was the only way to opt out. Angry users then flocked to social media sites — including Instagram's blog — threatening to walk before the new policy takes effect on Jan. 16.

However, Instagram said private accounts would remain so:

"If you set your photos to private, Instagram only shares your photos with the people you've approved to follow you. We hope that this simple control makes it easy for everyone to decide what level of privacy makes sense."

The hue and cry from Instagram users over the proposed changes stretched to even the photo-sharing site's biggest supporters: professional photographers. Ben Lowy, one of five photographers Time magazine hired to document the aftermath of Hurricane Sandy on its Instagram account, signaled his disappointment:

"Photography is my passion, my calling, and my means of livelihood. Now Instagram and Facebook want to take my hard earned imagery, and use it to generate income for themselves. What they have done is signal the end and failure of what could have been a revolutionary social media platform for visual communication. So for now, I must take a step back and reassess my place on Instagram."

Still more professional photographers, many of whom found the proposed terms exploitative, weighed in on Time's website earlier Tuesday.

"If Instagram does not change their terms to be more respectful of the needs of the professional photography community, then I will likely leave the platform once the new terms go into place," said Matt Eich. "That said, I believe that Instagram needs the professional community to remain involved in order to further validate their platform. Otherwise Instagram will end up as the graveyard for photographs of sunsets, cats and plates of food and the cool factor will be long gone."

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