Facebook’s most valuable resource is your information. The data it gathers on you as you check out your friends’ walls or post photos ultimately allows it to create a highly detailed demographic profile and serve you the most relevant ads. That already had some users a little on-edge about the social network, but with Home really stepping-up the sort of exposure you could have to Facebook, some of you have become a bit more trepidatious. In order to address some of your concerns, Facebook has put together a little FAQ about Home and its privacy implications.
The short story is that Facebook Home gathers pretty much the same data on you that the regular Facebook app did. If you allow the Facebook app to access your location info, Home will be able to use it in the very same way; so, it will get location data when you post, but not actively track you all the time.
For phones like the HTC First, with Home built-in, it will gather data on which apps are generating notifications. It won’t, however, record the content of those notifications.
The big change is that with Home, Facebook can see what apps you have on your phone, stored in the Home launcher. It won’t be able to monitor what you do in these apps themselves, but it will know which you’ve installed.
You can check out the full FAQ for the details, but that’s pretty much the scope of things.