Below, you will find links will help you to better protect your child's privacy while still enjoying Facebook.
Privacy Controls - http://www.facebook.com/help/privacy
This link shows how to report a violation such as bullying, violent/graphic post, or promotion of drugs, self-injury, or eating disorders. It will also allow you to get help for someone who is making suicidal statments. http://www.facebook.com/report
Facebook statement of Rights and Responsibilities - http://www.facebook.com/legal/terms