With the most recent update to Facebook privacy settings (December 2009), there are some new things you should know and steps you should take to safeguard your privacy. Though a "wizard" guided Facebook users through the changes after the new settings rolled out, several settings were changed by default and were not included in the wizard. Many of these changes made information public by default, which is not something many users would want (and which the FTC is complaining about).
There are 4 levels of privacy in Facebook, with "everyone" meaning that all your information is available to search engines. The most private setting is "Only Friends".
In order to review your privacy settings, go to Settings > Privacy Settings in Facebook. You will want to review the privacy settings on all the first 4 sections. The website "Make Use Of" suggests the following actions to review your settings:
The new Facebook privacy settings offer a lot more options to protect your information at a granular level if you take the time to alter your settings. So, make yourself aware of the options and choose wisely!