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Friday - May 12, 2000

Parents Unclear on COPPA Law

According to the NY Times:

"It has been more than three weeks since the federal Child Online Privacy Protection Act went into effect, yet many parents are still in the dark about the legislation.

The law, which is the first of its kind online, is intended to keep commercial Web sites and marketers from collecting identifiable data from children under 13 without a parent's approval. Under COPPA, any site that collects e-mail addresses, names or birth dates must request a signed permission slip or a credit card number from parents or face fines from the Federal Trade Commission.

An informal survey of parents on three online parenting chat areas --, and -- found only a handful of parents had even heard about the legislation.

"Industry officials say that parents may not be aware of the new law since most medium- to large-sized Web sites have been in compliance with COPPA since Oct. 20, when its rules were announced by the FTC...Of those parents who had heard of COPPA, some said they resented what they felt was a governmental intrusion into their lives..."

Click here for the full story (may require free registration)

Click here to see if you are compliant with COPPA.

Forbes Magazine: "When the Music Stops"
According to Forbes Magazine:

"Within days, even hours, of Nasdaq's tumble, venture firms went on the defensive, slashing company valuations, freezing contracts with young private companies and backing out of deals altogether. They're forcing companies to rein in costs, look for merger candidates and scrap plans to go public.

The private-equity market usually lags the public markets by several months. Not this time. "It's happening far more quickly and with more ferocity than anyone could have guessed," says James Breyer, the managing partner at Palo Alto, Calif.-based Accel Partners. Late-stage investors in companies Accel has backed are devaluing some of those firms by 25%, matching the recent Nasdaq decline.

Inevitably, the torrent of me-too dot-coms will slow. The bear's sudden appearance signals a return to yesteryear, when VCs waited years for a payoff, expected fewer blockbusters and reaped more modest returns. Palo Alto, Calif.-based Trident Capital put the word out to its companies to slash costs and hoard 12 months of cash, warning them they might have to wait much longer to go public..."

Click here for the full story.


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