Facebook enlists plain English to clarify how it makes money

SAN FRANCISCO – Facebook is updating its terms and services guidelines to clarify how it makes money from the personal information of its users.

Facebook’s changes are largely cosmetic. While there are no major policy changes, the new guidelines will add more context to its existing terms.

The updates will take effect July 31 for all Facebook users. Facebook has come under fire with regulators in the U.S. and Europe for the way it handles personal information. The company is making the updates after working with a European consumer protection group and regulators around the world.

Its new guidelines span nearly 10 pages and spell out that Facebook is free for users because it makes money from advertisers and that violating its terms may lead it to remove posted material from the site.