Google is changing its terms of service to allow them to use your name and photo in advertisements to your friends. Most people seem to have been opted in to this by default, although some (including me) have found themselves defaulted out of the program.
If you are uncomfortable with your name, picture, and opinions appearing in ads from Google, just go to Google’s Shared Endorsements Settings page. The page describes the program. At the bottom you will find a checkbox. Uncheck it, and click “Save”.