(Image Source: Facebook/FTC)

BY LAUREN ZIMA

Facebook has come to a settlement with the Federal Trade Commission over charges the site had deceived consumers over their privacy settings.

In charges dating back to 2009, the FTC said Facebook told consumers their information was private, when really it was public -- and changed privacy settings without consulting users. Under the new settlement, Facebook must get consumer approval before changing the ways it shares their data -- and submit to audits of its privacy practices for the next 20 years.

The New York Times called the settlement a “strongly worded order,” but Wired’s headline carries a different opinion, saying:

“FTC Slaps Facebook’s Hand Over Privacy Deception”

So, which is it? Portfolio says more time is needed to see how the settlement will play out.

“ …how the settlement will be implemented is not yet clear. Privacy groups were skeptical that the settlement would make any long-term difference… Privacy International said … users are unlikely to read the small print when it comes to privacy agreements.”

And ZDNet says Facebook has more troubled waters ahead.

“This is not the end of Facebook’s privacy woes: in fact, it’s just the beginning. The social networking giant is facing increasing scrutiny from various government bodies regarding its various practices …”

Still, the settlement is good in some ways for Facebook -- it comes in time for the company to go public with its IPO, which it’s expected to do next year.

And a blogger for the American Civil Liberties Union says while the settlement isn’t perfect, it’s a good start.

“Facebook Is Abiding By Its Own Rules, Great! Now How About Good Rules For Everybody? … This settlement … is an important step, making it clear that companies can't simply change the rules without asking users’ permission.”