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Facebook shares rose 1.1 percent to close at 3.86 (roughly Rs.
11,600) on the news, which sparked a sell-off of established online dating service providers.
Employment attorney Anna Cohen, writing in HR Hero Online, suggests that no-dating policies can be problematic, as it is difficult to define exactly the type of behavior that will be restricted. United Parcel Services, the 7th Circuit appellate court upheld a no-dating policy that forbade managers from a romantic relationship with any hourly employee, as long as it was consistently enforced.
However, in its opinion, the court also stated that the policy may have gone too far.
Without a clear policy, an office relationship can lead to charges of sexual harassment and legal consequences for the employer.
Although some companies chose to have no policy on dating, that leaves them open to potential liability if a supervisor is shown to have sexually harassed a subordinate, for example, by giving a poor performance review to a former partner.
Sparks Networks, owner of JDate and Christian Mingle, fell 7.3 percent before recovering and closing up 0.8 percent.
Cohen suggests that banning or limiting dating between supervisors and subordinates is the most important aspect of a dating policy.
Facebook said in January that at the end of 2017 time spent by users had fallen by about 50 million hours a day, after changes designed to reduce passive video watching and stem the spread of sensationalism.
Facebook's entry into the growing online dating market sent shares of industry leaders tumbling.
The prototype was built around local, in-person events, allowing people to browse other attendees and send them messages.
It did not appear to have a feature to "swipe" left or right on potential matches to signal interest, as Tinder and other established services have.