Instagram, which was bought by Facebook earlier this year, had said it was changing its policy to allow it to sell any photo uploaded by its users to advertisers.
According to the updated terms of service, published on Monday, which would come into effect on 16 January:
News of the changes triggered an internet storm, as users expressed their outrage on Twitter and other social media websites.
On Tuesday evening, Instagram tweeted a blog entitled "Thank you, and we're listening".
It stated: "Since making these changes, we’ve heard loud and clear that many users are confused and upset about what the changes mean".
It went on:
It quickly prompted a number of responses, including: