If you want to stop social networking services from exploiting your likeness for advertising, you've got to start paying up.
Some or all of the Service may be supported by advertising revenue. To help us deliver interesting paid or sponsored content or promotions, you agree that a business or other entity may pay us to display your username, likeness, photos (along with any associated metadata), and/or actions you take, in connection with paid or sponsored content or promotions, without any compensation to you.
Note the key parenthetical -- "(along with any associated metadata)" -- which you could read as "location data." In essence, if you go to the Palms in Las Vegas and snap a pic...
Not that any of this is all that surprising. It's a free service that's been focused on building user engagement, et cetera, in hopes of selling that engagement to advertisers.
Which reminds me of this wonderful mini-rant from Pinboard's Maciej Ceglowski, who identifies the key problem:
To avoid this problem, avoid mom-and-pop projects that don't take your money! You might call this the anti-free-software movement.
If every additional user is putting money in the developers' pockets, then you're less likely to see the site disappear overnight. If every new user is costing the developers money, and the site is really taking off, then get ready to read about those synergies.
To illustrate, I have prepared this handy chart:
Free Paid Stagnant losing money making money Growing losing more money making more money Exploding losing lots of money making lots of money
Under these conditions, companies have to sell themselves because they do not have a sustainable business. And when they're sold, they either A) get shut down or B) become part of an advertising machine, like Facebook's.