Employers reportedly are demanding that job applicants fork over their Facebook passwords; Facebook has responded by threatening to sue employers for violating its terms of service. Facebook could easily add teeth to this threat by amending its terms of service to provide that Facebook users are intended third-party beneficiaries, enabling them to sue employers directly instead of having to rely upon Facebook to do so. (Facebook’s current terms state just the opposite–that they do not confer any third-party beneficiary rights.) A liquidated damages provision would be nice as well, plus attorney’s fees, to make the lawsuits worthwhile. Facebook would also have to make a minor modification to its login process, to ensure that any login from a new IP address requires explicit agreement to the terms of service.