The site can refuse to allow people to change their names and insists people don’t use fake names unless in the most “unusual circumstances”.
Last year a group of drag queens in San Francisco had their accounts deleted because they were deemed to be violating the policy.
“People need to feel safe and be confident they know who they are communicating with,” says Facebook.
“When people use the names they are known by, their actions and words carry more weight because they are more accountable for what they say
“However, after hearing feedback from our community, we recognise that it’s also important that this policy works for everyone, especially for communities who are marginalised or face discrimination.”
The social media site has begun a trial of the new rules – for American users to begin with.
But why do people want to change their names on Facebook in the first place?
Newsbeat hears from four people.