Facebook To End Beacon Tracking Tool In Settlement

BARBARA ORTUTAY

NEW YORK (AP) — Facebook is shutting down its much-maligned Beacon marketing program, launched nearly two years ago amid fanfare only to generate a storm of privacy complaints over the tracking of user activities at partner Web sites.

Facebook agreed to end Beacon and create a foundation to promote online privacy, safety and security as part of a $9.5 million settlement in a lawsuit over the program. A federal judge in California still must approve the terms.

Meanwhile, Facebook is teaming up with the Nielsen Co. to help advertisers grab the attention of the hordes that are spending more of their time at the Internet hangout. Sheryl Sandberg, Facebook's chief operating officer, is expected to unveil the new marketing program, called "Nielsen BrandLift," at an advertising conference Tuesday in New York.

Facebook thought the Beacon marketing program would help users keep their friends better informed about their interests while also serving as "trusted referrals" that would help drive more sales to the participating sites. Sprinkled in with status updates and photos were alerts on what items their friends had bought or reviewed.

But users complained that friends could learn of holiday gifts they had bought at the online retailer Overstock.com or learn of the mindless movies for which they had purchased tickets through Fandango.