The backlash against Facebook’s growing power on the web and its ongoing push to make its users share more data has captured the interest of social media watchers for the last few months and has come to a head in the last few weeks.

Facebook simplified its privacy controls for 350 million+ users last December. But some users and privacy advocates protest that important controls got lost in translation — including the right to keep one’s data from unscrupulous third-party developers.

The hacker community have ironically joined forces in exploiting this misstep in the effort to illustrate the impacts of the privacy decisions made by the social networking service provider. Sites like OpenBook expose Facebook status updates made public by default and available through Facebook’s open API.  The prepopulated search term on the site, “don’t tell anyone”, is a particularly strong indication of how little users know about the impacts of these changes.

Online communities of dissatisfied users have clustered around this issue by organizing mass boycotts, often using other social networks as the tool for communication.  Quitfacebookday implores Facebook users to “commit to quit” on May 31 by signing their name or Twitter handle to the list of pledges.   Over 6000 users have pledged their support.  FacebookProtest has organized a boycott on June 6th, “asking those who disagree with the changes Facebook has made to its “privacy” policies to commit to not logging in or interacting with Facebook in any way”.

All of these actions are striking in their unanimity that Facebook succeeded in becoming the biggest thing on the Internet by fostering trust and reflecting the open and fair qualities that drove the turbocharged, global adoption of the Internet.  Zuckerberg and his company need to make up the trust gap created by their strategies, but just ask Toyota, it’s a long way back.

So how should your company play the risk?

1) Explore other social networks: Just because Facebook is getting slammed, don’t read this as an outright rejection of social networking as a whole.  Other services, particularly vertical specialists such as LinkedIn, are flourishing.  Find the networks that make sense for your business and get active in them.

2) Use Twitter Chats: In the early days, social networking was done on online forums.  These subject matter expert arenas are still active today.  Many have turned to Twitter chats to get their message out to more users and allow more participation.  Online coupon and deal site Slickdeals does a great job with its feed. Also, the Facebook users will need to go somewhere, and Twitter is the place.

3) Have Your Authentication Plan B: The non-social networking services that Facebook provides will suffer from the perception shock that their strategies are generating.  Facebook Connect is a great way to smooth over the registration and user information hurdle for a new online service.  Don’t bet the farm on it.
4) Shore Up Your Privacy Policy: Ensure that your company’s treatment of personal information is clearly stated and understandable.