Facebook’s terms of use make a vague statement prohibiting “creat[ing] a false identity”. Their code of conduct goes a little further, telling members they may not “register for more than one account or use or attempt to use another’s account, service or system without authorization or create a false identity on the Service or the Site”.

The Sydney Morning Herald explains this as Facebook “making the web more credible” by preventing people from hiding behind pseudonyms and false identities. I prefer Valleywag’s interpretation, that this is Facebook’s guarantee to their advertisers that targetted ads are being aimed at the right demographics. You don’t want to pay to advertise to 20 year old women on Facebook, only to discover that half of them are actually 50 year old men in disguise.

Many eBay sellers and etailers I know have Facebook IDs that match their business names. From a branding point of view, this looks like a great idea: if you’re going to use Facebook to promote your online business, better to do it under your business name, right? But if you’re doing that, you’re risking having your Facebook account terminated.