Facebook's Instagram photo sharing service has been by a civil lawsuit over the proposed service terms that prompted howls of protest last week. In a proposed class action lawsuit filed in San Francisco federal court on Friday (U.S. District Court, Northern District of California, Lucy Funes, individually and on behalf of all others similarly situated vs. Instagram Inc., 12-cv-6482.), a California Instagram user leveled breach of contract and other claims against the company.

In announcing revised terms of service last week, Instagram spurred suspicions that it would sell user photos without compensation. It also announced a mandatory arbitration clause, forcing users to waive their rights to participate in a class action lawsuit except under very limited circumstances.

Instagram founder and CEO Kevin Systrom later retreatet partially, deleting language about displaying photos without compensation.

However, Instagram's new terms will allow the company to place ads in conjunction with user content and will keep the mandatory arbitration clause.

Instagram said it would "vigorously" fight the complaint.