By Nicholas Carlson, 1:20 PM on Tue Jun 24 2008, 593 views (Edit, to draft, Top, Slurp)

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Ad network for widgetmakers SocialMedia plans to serve ads in Facebook widgets and possibly across the Internet that use pictures of the ad-viewers' Facebook friends. Called "social banners," the service can only display a Facebook user's picture if that user already added a widget made by one of SocialMedia's partners, thereby agreeing to share such personal information. But after adding the widget, the "social banners" service is opt-out only — much like Facebook Beacon, the controversial ad program Facebook founder Mark Zuckerberg called a "mistake" at the AllThingsD conference. The news has Facebook-watcher and SocialTimes blogger Nick O'Neil freaked out. "There are a number of issues at hand and many of them are extremely complex," O'Neill writes. We're not that worried. Facebook users should know that adding a third-party application means you're willing to share your personal information with that third-party. A commenter on O'Neill's post puts its simpler: "If you don’t like it just change settings to block 3rd party cookies. 10 seconds, privacy issues solved."