Ethics Newsline®

SAN FRANCISCO
Social networking site Facebook last week changed its three-week old advertising system after privacy complaints from users.

According to the Agence France-Presse, members now will be subject to the advertising system, which tracks and displays their purchases, only if they actively “opt in.” Previously, members were included automatically unless they took the extra step to “opt out.”

The system, called Beacon, is what’s known as a targeted advertising partnership — an arrangement where purchases from partner sites are incorporated into the members’ “news feeds” — the San Francisco Chronicle reports.

In other words, data purchases made by members at the partner sites were relayed to Facebook, which then relayed them to thousands of other members.

The partner sites forwarded the data in order to receive what amounts to free advertising on Facebook.

Charlene Li, an analyst for Forrester Research, told the Financial Times that while she applauded the changes, Facebook will have to “do a lot more to regain the trust of not only its members but also its partners,” many of which are fearful of another privacy backlash.

Among other consumer complaints, Beacon has been blamed for spoiling holiday surprises for family and friends of Facebook members after Christmas shopping selections were broadcast, notes the London-based Independent.