An investigation conducted by Wall Street Journal, my former employer, found that many of the most popular applications on Facebook have been transmitting identifying information—in effect, providing access to people's names and, in some cases, their friends' names—to dozens of advertising and Internet tracking companies. This is true even if you set your profiles to Facebook's strictest privacy settings.
The article is
here
The problem is that applications like Farmville runs on top of Facebook using "iframes" and it lets the application developers do whatever they want to do with the application including providing ads and sending whatever information they can collect from the browser such as IP address, browser cookies, etc.
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