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Indio888: To repeat from earlier: No. I'm not happy that photos I upload, which are my copyrighted IP, are being exploited by some unauthorized service so they can compete with me and sell prints. I sell prints myself and a third party does NOT have my permission to do so.
If this company was selling coffee mugs with Disney characters on them, you better believe they would be sued into oblivion.
This urban myth won't die. You didn't not sign away your rights to your photos under the FB TOS. You only granted a license to allow them to display the photos in connection with the service -- which is necessary if you you want your pictures to be visible on a Facebook page. That does NOT permit Facebook or any other agency to sell your photos or convert them for other purposes. The Instagram ploy of a couple months ago attempted to do just that, and it was quickly buried in user outrage. it is likely that this latest FB gambit will see the same reaction.
As Karl and szedman point out, this analysis is incorrect. The previous TOS was similar to that of other photo sharing sites and does not grant a license for the host to do anything not connected with the job of displaying the pictures, as necessary to provide the hosting service. The new TOS would go well beyond that to permit commercial use of the photos without compensation or notice to the artist -- that is, clearly usage beyond that which is necessary to simply provide the hosting service. That's different, and it justifiably has caused considerable concern.