Through a tool known as Partner Categories, Facebook has allowed advertisers to target highly specific groups of people on its platform using additional information gathered by the data-collecting firms.
"We want to let advertisers know that we will be shutting down Partner Categories", Graham Mudd, a product marketing director at the company said: "This product enables third-party data providers to offer their targeting directly on Facebook".
Mr Collins' remarks came as a parliamentary meeting heard evidence on the alleged illicit transfer of Facebook users' data by Cambridge Analytica (CA).
Last week showed how much more work we need to do to enforce our policies and help people understand how Facebook works and the choices they have over their data.
Cambridge Analytica, a firm from the UK, has been accused of undermining US democracy: Exploiting personal information from more than 50 million users to influence the 2016 presidential election.
Chris Cox, Facebook's chief product officer, called the new settings "the first of many steps" the company is taking to address privacy concerns.
The company is also facing mounting tax scrutiny from US authorities after a US judge said it must give up sensitive documents relating to Facebook's use of Ireland as a tax base.
The complainant raised the issue with Edwards, who found Facebook was subject to New Zealand's Privacy Act, and had fundamentally failed to engage with it.
If we find developers that misused personally identifiable information, "we will ban them from our platform". The company has not said exactly what it used such data for or why it needed it. On Monday, the Federal Trade Commission said it is investigating Facebook over its privacy practices.
Facebook CEO Mark Zuckerberg has apologized for the data breach
"Zuck promised easier, better privacy controls 'in the coming weeks' eight years ago", Zeynep Tufekci, a University of North Carolina professor who studies social media, said on Twitter. To delete your account, go to Settings and under General Account Settings, the last option is to deactivate your account.
The updates include easier access to Facebook's user settings and tools to easily search for, download and delete personal data stored on the site used by two billion people.
"The good thing is that it's clear there's an explosion in entrepreneurial energies in this country". This, however does not mean the information mined by Facebook about you will disappear.
Globally, the European Union (EU) is the most stringent when it comes to data protection. The new Privacy Shortcuts is a menu where you can control your data in just a few taps, with clearer explanations of how our controls work.
Facebook's vast and well-designed platform offered the Trump campaign and its supporters cheap, direct access to African-American voters - and along with this the chance to mislead and intimidate. The new "access your information" section will give users a secure way of managing the data they've shared with the company including comments, statuses and stuff they've searched for.
The Office of the Privacy Commissioner has been asked for comment on Facebook's latest response.
He said the data disaster is just the "tip of the iceberg".