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Oh, you didn't read our 30 page 8 font legalese terms of service saying we can do what we want with the data we need to collect to provide you with this thing.
I'd put /s but it is not sarcasm. The Mozilla foundation privacy not included and Terms Of Service;Didn't Read have good info as who collects what.
While I definitely would like better transparency on data collection practices, I don't think that solves the fundamental frustration that people want to use a costly service without paying anything. The fact of the matter is that I think, for most people at least, if you transparently tell them "We're going to collect a bunch of data in order to serve you targeted advertisements, and in exchange, you get to use Instagram for free", most people will find that to be a fine deal, or at least better than paying money or not using the service at all.