Facebook started as a social network for college students but is now open to all ages 13 and up. Users can create profiles, connect with friends, and share photos and videos. However, Facebook's business model relies on using user data for targeted advertising, which has compromised user privacy. Early policies like Beacon and lack of deletion option violated privacy. Features like News Feed and third party quizzes also gave away more private data than users realized. As Facebook focuses on profits, it must find a better balance with protecting user privacy and giving users more control over their personal information.

1. Facebook’s Dilemma:Profits versus Privacy Laura Musa Joaquin Castillo

2. What is Facebook? Facebook is a social networking website that was originally designed for college students, but is now open to anyone 13 years of age or older. Facebook users can create and customize their own profiles with photos, videos, and information about themselves. Friends can browse the profiles of other friends and write messages on their pages. Facebook provides an easy way for friends to keep in touch and for individuals to have a presence on the Web without needing to build a website. Since Facebook makes it easy to upload pictures and videos, nearly anyone can publish a multimedia profile.

3. What concepts in this chapter are illustrated in this case? E-Commerce E-Commerce Marketing

4. What is the role of e-commerce and Web 2.0 technologies in Facebook’s widespread popularity? The role of e-commerce and Web 2.0 technologies in Facebook includes the easy idea of sharing photos, posting videos, messaging, creating your own profile, or even adding a widget. This includes having interactivity, real-time user control and social participation which Facebook offers in a simple and clean interface, and a structured social networking environment.

5. Describe the weaknesses of Facebook privacy policies and features. What people, organization, and technology factors have contributed to those weaknesses? Account Deletion: Before, Facebook users had the ability to deactivate their account, not delete it. This meant that Facebook maintained copies of the users information indefinitely. Beacon Program: It would track what Facebook members purchased in their corporate sites, send the information to Facebook, and then share it with friends without the permission of the user; management later announced that users could opt-out.

6. Describe the weaknesses of Facebook privacy policies and features. What people, organization, and technology factors have contributed to those weaknesses? News Feed: A continually updating list of news stories about friends; it shows where friends went (the specific place, or where to rent a movie). Quizzes: Facebook uses third party quiz applications which users do not realize the extent to which developers of such have access to personal information.

7. Does Facebook have a viable business model? Facebook does not have a strong business model, since its profit is made by the advertisement and does not require payment from its users.

8. If you were responsible, for coordinating Facebook’s advertising, would you balance the desire to become increasingly profitable with the need to protect privacy of your users? We would ask information ourselves to our customers, if they do not want us to access, then its their choice, their privacy.