find friends nearbyThe social networking site, Facebook Inc (NASDAQ:FB) has announced that they will no longer offer the Find Friends Nearby app after only one day.  The application uses GPS to find other people around you that are logged into Facebook Inc (NASDAQ:FB) who live or work near your location.  Facebook has not officially told us why they scrapped the app but common sense may do the trick.

While the idea is very innovative and creative, is can also be used as a tool for fraud or other crimes such as burglary.  Not to mention, it does walk the line of invading privacy.  Think, would you want some random stranger to have a GPS pinpoint of your location?  To me, that does not sound very safe, and I think it is good Facebook was able to take it down before anyone had the chance to use it in a negative way, as far as we know.

A spokeswoman for Facebook Inc (NASDAQ:FB) said that the app was a trial being tested by Facebook engineers.  The spokeswoman went on to say that some apps get approved while others do not.

Facebook Inc (NASDAQ:FB) quickly took down the app after the company received some protest on the new app after details were accidentally leaked.  Seems like a classic cover up, Facebook now says that it was just testing the service.

Additionally, a small tech company called Friendthem made a claim Monday that Facebook stole the concept of finding friends around you from them.  “I was amazed on Sunday to read that Facebook Inc (NASDAQ:FB) is blatantly stealing our idea with what they are calling, ‘Find Friends Nearby,'” says Friendthem CEO, Charles Sankowich.  Now, Friendthem says they may decide to open a lawsuit against Facebook after their actions.

Facebook Inc (NASDAQ:FB) shares are still trading under their $38 IPO price but lately they have been regaining some of their lost ground which is good news if you still have red next to your Facebook trade.  That being said, a potential lawsuit may not be the catalyst everyone is looking for a move to the upside.  Facebook needs to sort this mess out before it worries investors.

The bottom line here is that Facebook’s Friends Nearby app was a failure and when the smoke ended up clearing it seems as though Facebook attempted to cover up the blunder by saying that it was just the engineers testing the service.  Facebook needs to jumpstart new services however, to keep investors interested.

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