So I read the description of the story and thought to myself "this makes no sense, if you posted photos as private or friends only, how on earth did Channel Seven get hold of them?"
So, shockingly, I read the story and it turns out the description is completely wrong. Here are the key parts (bold mine for emphasis):
Australia's communications regulator has ruled that television networks are not breaking the industry's code of practice when publishing photos lifted from a public Facebook profile.
[...]
"The ACMA found that due to the open nature of the tribute page, the absence of privacy settings and the non-sensitive nature of the photographs, Seven did not breach the privacy provisions of the code," the ACMA noted in a press statement.
In short, they lifted photos tagged as public on a public tribute page, littlekorea completely twisted the truth (by mixing up "public" and "private") when submitting the story and timothy didn't do any basic editing.
It'll be interesting to sit back with the popcorn and watch the comments from outraged slashdotters who didn't bother to read the story and the upvotes from those with moderator points who equally didn't bother to read the story ...