No, it's true. Instagram can sell your art for however much they want. They can blow it up big, bigger, or humungous. AND then sell it without telling you, without giving you any credit or money. It's true.
Say Purina is looking for a new puppy to put on all of their dog food bags. They can see what dog pictures got a certain number of likes or views. "Hhmm...this is a nice dog...let's see if Purina wants it." "Hello? Purina? Yes, we have a nice dog picture here, we'll sell it to you for 1 million dollars." [[I have no idea how much they'd sell it for.]] Then, you get no credit for taking the picture, you get no money, and Instagram now owns ALL of your pictures.
Honestly, Instagram photos are basically thumbnails. How would they sell them? Who would buy a picture that size? I don't use instagram for posting art, so I'm not really worried, but what are they trying to prove?
An example given was that they'd license the photos to company websites looking to show user-submitted style content. Such as a photostream by budweiser beer "take a look at the great parties going on with budweiser" even though they could not put a budweiser logo on top of the photos.
This is exactly why i dont like my mom posting my art on her damn facebook. Then she got pissed when i told her to take it down. It's my art. She doesnt own it, she has NO FUCKING RIGHT to post it where i dont want it it be >:[
Honestly, if Instagram wants to sell my photos, then be my guest. I don't use instagram as a platform for my photography as art. People posting their professional and/or hobby-based photos on instagram is just wrong anyway (as it's supposed to be a mobile phone community with phone camera).
In my opinion people are just stupid. Besides, calling yourself photographer is in no way a protected title, so I hope anyone doing photography thinks things through.