Yes, this is true. You should log into LinkedIn do the following:

1) hover on your name from the top right of the page and choose “Settings”
2) Click the “Account” tab from the list of tabs (profile, email preferences, groups, account)
3) Click the “Manage Social Advertising” selection under Privacy Controls and uncheck the box.
4) Click the “Turn on/off enhanced advertising” and uncheck the box.

This way you won’t get the advertising, and they can’t use your name and photo in any advertising.

[See UPDATE below!] Apparently, LinkedIn has recently done us the "favor" of having a default setting whereby our names and photos can be used for third-party advertising. A friend forwarded me this alert (from a friend, from a friend…) this morning. Devious. And I expect that you, like me, don't want to participate. This graphic shows you how to Uncheck The Box (click to biggify): 1. Click on your name on your LinkedIn homepage (upper right co … Read More

via Connection Agent