Under New York law, the model for Facebook's Social Ads may actually be illegal, reports The New York Times.
The problem stems from the way Facebook has tried to turn their members into brand endorsers. That plan has ads being attached to the pictures of your friends who have indicated they are fans of that brand or product.
New York law requires that written consent be obtained before a person's pictures or any other asset such as voice can be used for profit by another party. That would make, in the opinion of a University of Minnesota Law School professor, Facebook's ads illegal anytime they were displayed in New York State.
That same professor also says the format runs afoul of common law that says companies who co-opt someone's likeness for profit is invading their privacy.
Should any of Facebook's members actually care about such matters, they would face difficulties in bringing a suit. They would likely have to prove they had been harmed in some manner by their likeness being attached to the ad.