More transparency? Facebook will soon tell you how it makes money

Facebook has announced to introduce new terms of service, providing its over 2 billion users more details on how it makes money, removes harmful content and takes care of users' intellectual property rights.

The updates, effective from July 31, are the result of Facebook's work with the European Consumer Protection Cooperation Network and inputs from ongoing conversations with regulators, policymakers and consumer protection experts around the world, the company said in a statement on Thursday.

"We include more details on how we make money, including a new introduction explaining that we don't charge you money to use our products because businesses and organisations pay us to show you ads," noted Anna Benckert, Vice President and Associate General Counsel at Facebook.

Facebook said it would clarify when people share their own content -- like photos and videos -- and they continue to own the intellectual property rights in that content.

"You grant us permission to do things like display that content, and that permission ends when the content is deleted from Facebook. This is how many online services work and has always been the case on Facebook," Benckert added.

Facebook is also providing more detail about what happens when people delete content they have shared.

For example, when you delete something you've posted, it's no longer visible but it can take up to 90 days to be removed from our systems.

"We don't sell your personal data," it added.