Here's the quick version:
Facebook is launching a tool called Privacy Basics that'll show users who can see what they share.
A longstanding problem with Facebook is that it's not always clear who can see the photos, updates, links, etc. you post.
The Privacy Basics tool walks you through that and gives you other tips like how to remove your name when someone tags you in a photo.
Here's one example from the Privacy Basics tutorial:
Facebook will also give you better control over the types of ads you see. Before, if you opted out of a certain type of ad on the desktop version of Facebook, there was a chance you'd still see it on the smartphone or tablet version. Facebook will now save those settings across all versions. You can get more details about that here.
Here's the full email Facebook is sending to users:
We wanted to let you know we're updating our terms and policies on January 1, 2015 and introducing Privacy Basics. You can check out the details below or on Facebook.
Over the past year, we've introduced new features and controls to help you get more out of Facebook, and listened to people who have asked us to better explain how we get and use information.
Now, with Privacy Basics, you'll get tips and a how-to guide for taking charge of your experience on Facebook. We're also updating our terms, data policy and cookies policy to reflect new features we've been working on and to make them easy to understand. And we're continuing to improve ads based on the apps and sites you use off Facebook and expanding your control over the ads you see.
We hope these updates improve your experience. Protecting people's information and providing meaningful privacy controls are at the core of everything we do, and we believe today's announcement is an important step.
Source : http://www.businessinsider.com/facebook-privacy-policy-change-2014-11