"We launched Tag Suggestions to help people add tags of their friends in photos; something that's currently done more than 100 million times a day. Tag Suggestions are only made to people when they add new photos to the site, and only friends are suggested. If for any reason someone doesn't want their name to be suggested, they can disable the feature in their Privacy Settings."
"When we announced this feature last December, we explained that we would test it, listen to feedback and iterate before rolling it out more broadly. We should have been more clear with people during the roll-out process when this became available to them. Tag Suggestions are now available in most countries and we'll post further updates to our blog over time."
Despite this response, the wide amount of media coverage as seen here, here and here on this topic proves there is a genuine concern from the public. Facebook have now posted an updated blog post explaining the feature and addressing the privacy issues.