FoolProof, the financial literacy advocacy project sponsored by credit unions, has joined nine national consumer organizations in filing a complaint with the Federal Trade Commission against Facebook over privacy rules.

"In the past days, every user of Facebook has been asked to update their privacy settings," said Will deHoo, FoolProof's 29-year-old president and founder. "Facebook implies that the update will enhance a users' privacy but we think the opposite is true because we believe the enhancements put users at risk of identity theft or worse."

Foolproof, advanced in U.S. classrooms under auspices of the Colorado and Wyoming Credit Union Associations and 10 sponsoring league groups, said its complaint was filed last Friday and led by the Electronic Privacy Information Center of Washington.

"FoolProof is proud to be part of this important effort to help protect consumer's rights," said deHoo, who pointed to a statement by the privacy group calling the complaint "the most significant case" of its kind now before the FTC.

Other groups in the FTC complaint include the Consumer Federation of America, American Library Association and the Privacy Rights Now Coalition. FoolProof officials in Melbourne, Fla. where the company is headquartered stress the FTC action is brought by the vendor and not the CU leagues. Facebook has denied its privacy rules injure users.