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In the wake of reports that suggested Facebook might be close to axing its controversial Beacon advertising program altogether, a company employee has come out and said that while changes to the application are imminent, it's not going away.

This follows a BusinessWeek report from Wednesday that indicated the program would be tweaked or even eliminated altogether.

Beacon, a component of Facebook's new "Social Ads" initiative, was assailed soon after its debut by leftist activist group MoveOn.org over what the group saw as grave privacy concerns. MoveOn stepped up its rhetoric earlier this week when it brought up evidence suggesting that Facebook had intended to make participation in Beacon easier to opt out of, but had changed the application shortly before its launch.

Now it looks like Facebook will be making some changes.

Facebook customer support representative Paul Janzer responded to the complaints in a post on the message board for the Facebook group that MoveOn had begun as a hub for its anti-Beacon campaign.

"Your feedback has made it clear that Beacon can be kind of confusing," Janzer wrote. To fix this, we are clarifying the way we inform you about a Beacon story before you decide whether or not you'd like to publish it on Facebook. We're also working on making the sites that offer Beacon more visible to you, both on Facebook and through visual cues, so you can determine which specific sites you can publish stories from." In addition, Facebook will offer expanded information about the advertising program on its site.

And in response to some dissatisfied Facebook users who said that Beacon ads had broadcasted their entire holiday shopping lists to their "news feeds," Janzer added the quick apology, "We're sorry if we spoiled some of your holiday gift-giving plans."

This story was updated at 2:36 PT to provide comment from Facebook and at 3:59 PT to provide further comment from MoveOn.

Is there more to the controversy surrounding Facebook's "Beacon" ads? MoveOn.org thinks so.

Last week, a feud began to brew between leftist activist group MoveOn.org and social-networking site Facebook concerning its "Beacon" advertisements, which broadcast information about users' activity on third-party partner sites to their friends' Facebook newsfeeds. According to MoveOn, it's a violation of user privacy because there's no way to universally opt out of Beacon ads. Facebook retorted, and the argument has turned into a legitimate debate over how far is really too far when it comes to sharing information about members' activity.

Now, MoveOn is poised to launch a new offensive against Facebook, claiming that early screenshots of Beacon posted by TechCrunch indicated that the advertising application once included a "global opt-out" that would allow members to block it entirely. According to MoveOn, this never made it into the final version, and the organization--which has created a petition and a Facebook group to raise awareness of what it sees as a hot-button issue--wants to know why.

"Facebook should explain why they chose at the last minute to put the wish lists of corporate advertisers ahead of the privacy interests of their users," MoveOn spokesman Adam Green said in a statement from the organization. "Facebook has the potential to revolutionize how we communicate with each other and organize around issues together in a 21st century democracy. But to succeed, they need the trust of their users. The fact that Facebook proactively chose to make it harder for their users to keep private information from being made public will rub a lot of Facebook users the wrong way. The ultimate act of good faith would be to switch to an opt-in policy."

Facebook issued a response on Monday afternoon in the form of an e-mailed statement. "Facebook is listening to feedback from its users and committed to evolving Beacon so users have even more control over the actions shared from participating sites with their friends on Facebook," the statement read. "Facebook already has made changes to ensure that no information is shared unless a user receives notifications both on a participating website and on Facebook."

Shortly thereafter, the back-and-forth spat continued as MoveOn's Adam Green issued a response to the response. "Facebook has made zero changes in Beacon since last week--their policy remains opt-out instead of opt-in, their opt-outs remain well hidden, and if someone does jump through the hoops of opting out it only applies to purchases made on one external web site instead of all sites," Green's statement read. "Why did Facebook pro-actively make it harder for Facebook users to protect their privacy by eliminating the global opt-out feature days before Beacon's launch?"

Meanwhile, reactions are divided. Comments CNET News.com readers voicing their opinions of MoveOn's persistent campaign have ranged from support for what they see as a rally against "outrageous breaches of privacy" to suggestions that if Facebook users have a problem with Beacon that they should, well, move on.

An early screenshot of Beacon, as seen on TechCrunch.

(Credit: TechCrunch)

This post was updated at 8:03 PM PT to provide additional comment from MoveOn.org.

Facebook issued a statement on Tuesday afternoon in response to online activist group MoveOn.org's charge that its "Beacon" advertising program is a violation of users' privacy.

"We encourage feedback from our users on new products," the Facebook statement read, "but in this case, the MoveOn.org-led group misrepresents how Facebook Beacon works. Beacon gives users an easy way to share relevant information from other sites with their friends on Facebook."

Beacon, which is part of Facebook's new social advertising strategy, broadcasts information about members' activity on third-party partner sites to their friends' "News Feeds." MoveOn's campaign has cited problems with the program ranging from its potential to reveal a user's entire holiday shopping list to the possibility that it might expose sensitive information that could put someone at risk.

Facebook's statement stressed that because this information is not public, it isn't an invasion of privacy. "Information is shared with a small selection of a user's trusted network of friends, not publicly on the Web or with all Facebook users," the statement explained. "Users also are given multiple ways to choose not to share information from a participating site, both on that site and on Facebook."

MoveOn.org spokesman Adam Green was quick to provide an additional response. "If Facebook's argument is that sharing private information with hundreds or thousands of someone's closest 'friends' is not the same as making that information 'public,' that shows how weak Facebook's argument is," Green said in an e-mail. "Facebook users across the nation are outraged that the books, movies, and gifts they buy privately on other sites are being displayed publicly without permission--and it's time for Facebook to reverse this massive privacy breach."

Online activist group MoveOn.org is poised to announce a campaign targeting Facebook's "Beacon" advertisements, which post information about users' activity on partner sites (movie rentals, purchases from online retailers) onto their friends' News Feeds. According to MoveOn representatives, the organization considers this to be a "glaring violation of (Facebook's) users' privacy," and has launched a paid ad campaign on Facebook, a "protest group" on the social-networking site, and an online petition to encourage the company to allow users to opt into the program at their own volition.

"The bottom line," MoveOn spokesman Adam Green said in an interview with CNET News.com, "is that no Facebook user should have their private purchases online posted for the entire world to see without their explicit opted-in permission."

It's true that Beacon advertisements are limited to the news feeds of the people on a user's friends list, but Green said that doesn't make a difference. He cited Facebook user testimonials that ranged from members who said their entire Christmas lists had been published on their News Feeds (spoiling many a surprise in the process) to student activists who were concerned that sensitive purchases might show up and result in serious consequences--"If a college kid rents Brokeback Mountain and some homophobic person on his campus sees that, that could be a real problem," he explained.

Beacon does allow members to opt out. But, Green said, that isn't enough for MoveOn, which got its start as a left-leaning grassroots organization. "The opt-out is very well hidden," he said. "It basically pops up for a second and then goes away, and it's on the bottom of your screen when you're purchasing on a totally unrelated Web site, so you aren't even looking for it." He added that there's not a universal opt-out, so members have to repeat the process on each partner site. "Even if you see the opt-out and jump through the hoops of opting out once, that doesn't solve the problem."

Some retailers participating in Beacon say they're familiar with its potential pratfalls, but insist that it will ultimately be a positive development. "I think it's a new technology, and until people get used to it, it might surprise some," said Josh Mohrer, director of retail for BustedTees.com. "We have had a few instances where people were surprised, not necessarily angry, but surprised that their purchase showed up on their Facebook feed...I think when it becomes ubiquitous, which it most certainly will as Facebook things tend to be, that people will get used to it and see it as a good thing."

Mohrer said that he saw where the complaints were coming from. "I think Facebook probably needs to do a better job of warning people about it," he said. "What's bad is that people are probably going to blame the merchant and not Facebook."

Additionally, Mohrer admitted that he doesn't entirely disagree with the concerns of activists who have pointed out potential privacy issues with Beacon. "You should have an option to turn it on," Mohrer added, "not the other way around, especially around this time of year."