Here is the latest on Facebook privacy concerns and the steps to turn this off…
To opt out of Facebook’s new profile sharing is a multiple step process:
STEP 1: Go to the “Privacy Settings.” Go to “Applications and Web Sites.” Then go to “Instant Personalization Pilot Program,” and hit edit settings.
STEP 2: For all users there’s an automatic check in the box below, which allows Facebook to share your information with other web sites. You are automatically “opted in.” If you do not wish to share this information, uncheck the box.
STEP 3: Even after you’ve done this, it is not clear whether you need to “opt out” at the sites where Facebook is intending to share your information, like Pandora and Yelp, and soon many more sites. So you will want to look at the upper left hand corner of those sites to see whether those sites are recognizing your Facebook account and activity. Here again, you need to opt out.
But a word of caution, as Facebook concedes, your information may still be shared through your friends accounts, unless you block the application from these web sites.