Facebook Revamps New Advertising System

Seeking to keep the peace in its popular online hangout, Facebook Inc. has overhauled a new advertising system that sparked privacy complaints by turning its users into marketing tools for other companies.

Under the changes outlined late Thursday, Facebook's 55 million users will be given greater control over whether they want to participate in a three-week-old program that circulates potentially sensitive information about their online purchases and other activities.

Facebook provided two different opportunities to block the details from being shared, but many users said they never saw the "opt-out" notices before they disappeared from the screen.

With the reforms, Facebook promised its users will now have to give their explicit consent, or "opt-in," before any information is passed along.

The concessions were made after more than 50,000 Facebook users signed an online petition blasting the system, called "Beacon," as a galling intrusion that put the Palo Alto-based startup's pursuit of profit ahead of its members' privacy interests.

More than 40 different Web sites, including Fandango.com, Overstock.com and Blockbuster.com, had embedded Beacon in their pages to track transactions made by Facebook users.