Facing challenges over its privacy practices -- or lack thereof -- Facebook is reportedly proposing a settlement with the Federal Trade Commission.

This is all according to a Wall Street Journal report, which has been cited by many news outlets:

According to people familiar with the talks, the settlement would require Facebook to obtain users' consent before making 'material retroactive changes' to its privacy policies. That means that Facebook must get consent to share data in a way that is different from how the user originally agreed the data could be used."

Such a settlement would mean that users would choose a new privacy policy, or "opt-in," rather than be put in it by default and then have to "opt out" if they didn't wish to be there.

Short on Privacy

Facebook has a long history of dropping the ball on user expectations for privacy. Back in 2009, Facebook made privacy changes that made status updates, images, and other user-created content public by default, which motivated more than a third of Facebook users to alter their privacy settings.

In May 2010, Facebook changed its privacy policy again, inspiring the creation of an official Quit Facebook Day and leading authorities in the U.S. and Europe to threaten lawsuits. 

Buggy Behavior

Last month, we reported on a lawsuit filed in the California district court asking the court for damages, as well as an order that would require Facebook to stop installing cookies that track users after they log out of the service. At issue in that lawsuit is the "frictionless sharing" feature between Facebook and some music sites. Users of Spotify, Rdio and Slacker listen to music, which is then shared with their Facebook friends.