Overstock Drops Their Affiliate Marketers
May 21, 2008
The New York State law that was passed forcing online retailers to tax any purchase made online to residents of the state, even without having a tax nexus in New York City is causing quite a problem.
This was a bill created by former Governor Eliot Spitzer (client #9) and his comrade and current Governor David Patterson, in an attempt to make up for excessive state debts.
Since the new law, Overstock.com have disgracefully dropped all their affiliates based in NYC. A letter was sent out to all NYC affiliates from Geoff Atkinson Vice President of Overstock.com discontinuing their relationship.
Here is the email sent out by Overstock.com
Unfortunately, at this time we are discontinuing our relationship will all New York Based Affiliates. We hope this is a temporary situation and that we will be able to resume the relationship in the future. Please see the attached documents for details.
Thank you, …”
I must say as a New York City based affiliate marketer, this definitely is a concern for me. Not because I am a affiliate for Overstock.com which I’m not, but because other out of state online retailers might follow and discontinue their affiliate programs to New York affiliates as well.
I am quite disappointed in Overstock.com but it is quite understandable, however I am proud to be part of the correct affiliate programs such as Amazon.com who took a stand by filing a complaint with the State Supreme Court about the law that will come into effect on June.
To find out more on the Amazon.com situation, check out this article by Saul Hansell of the New York Times Amazon Sues State Because Of New Law .