Facebook generated online buzz this week with the release of Facebook Places, the social network’s location-based service that lets users “check in” at stores, parks and other spots and tell their online friends they are there.

I’ve been playing Foursquare and Gowalla, two of the more popular check-in games, on my iPhone for the past few months, so initially I was excited to hear that Facebook had entered the games market. But as I learned more about Facebook Places and its privacy implications, my enthusiasm quickly waned.

The aspect of Places that bugs me the most — and the one that sent me rushing to my Facebook profile to change the privacy settings — lets other people check in their friends if they are at the same place. That’s a feature made for mischief, as explained in this video:

I would never check someone else in at a location without his or her permission, and I wouldn’t want anyone doing it to me. Friends just don’t let friends check them in.

That possibility is one of a few reasons parents should be concerned about their children using Facebook Places. They could be opening themselves to potential harm.

Enough Is Enough, a group aimed at protecting children online, outlined its concerns with the new service in a statement:

The “People Here Now” option included in “Places” shows users the other individuals who have checked into their same location, which could open a teen up to meeting other teens — which is not so scary — or adult strangers, who may or may not have best interests in mind. We recommend that all teens using the “Places” service uncheck the “Include me in ‘People here Now’ after I check in” in their privacy controls. … [W]e strongly recommend that Facebook change this feature to an “opt in” feature, meaning that default is set as “unchecked.” This would better protect users who haven’t taken the time to familiarize themselves in full with the privacy controls available.

We strongly recommend that teens utilize the most restrictive settings available through this service and their Facebook profile itself. This will allow users to control whether and when they are tagged at a place, and who sees their location. Parents and other adults concerned with child safety should be aware of the peer pressure that some teens might experience who choose not to use the feature in order to better protect their privacy and whereabouts.

That’s not to say Facebook Places is all bad. While I currently prefer Gowalla over both Places and Foursquare, and while I’ve changed my privacy settings to keep others from checking me in on Places and to limit who can see my check-ins, I still see value in Places, especially for businesses, organizations and others trying to promote their brands.

My boss, David All, outlined the “Top Five Ways To Use Facebook Places Effectively” in a piece for The Huffington Post.

The key is to make sure you that: 1) you protect your own interests if you use Facebook Places or anyone location-based game; and 2) if you’re a parent, keep your children safe, too.