In the reports it all comes down to UIDs or Facebook Identification Numbers which are most definitely transferred by applications and are used to identify Facebook users and link their activity on other websites to the users wall.

The plans for encryption are due to be rolled out in the coming days followed by adding support for the coding so that the applications can still run and function.  Mike Vernal one of Facebooks engineers wrote "While initial press reports greatly exaggerated the implications of sharing a UID, we take this issue seriously. Our policy is already very clear that UIDs may not be shared with ad networks and data brokers, but we recognise that some developers were inadvertently sharing this information "

However this solutions will not stop the deliberate sharing of user information and UIDs just the accidental sharing so there will people out there not fully satisfied with the half backed solution and potential violation of privacy policy. "While this proposal will address the inadvertent sharing of this information on Facebook, the underlying issue of data sharing via HTTP headers is a web-wide problem. We look forward to working with the web standards community and browser suppliers over the coming months to help address this issue," blogged Mike Vernal

We here are keen to see how the congress men and Facebook develop a solution to this long standing issue.  We look forward to their responses as well as feedback directly from the sociably networking sites.  Facebook Login will keep you posted on developments.