Anyway, now that the holiday is over, it's time to get back to business.
I am writing you so that you know you are in violation of an FTC law called COPPA as well as copyright infringement. Regardless of you obfuscate the picture, you are in violation in several ways.
You do not have verifiable parental permission nor copyrights of the picture of my daughter. Facebook maintains my copyright and holds a license to it that only applies to Facebook related sites until that picture is deleted. (see facebook copyright policy)
Feel free to contact me for settlement or any of the entities that will be in contact with you in the days to come.
John Gagon