Since my last post on the bad news from California, Governor Brown has signed the bill [more here], while Amazon has announced its decision to cut ties with its California-based affiliates (which includes not only affiliates of Amazon.com, but also of all its subsidiaries, such as Audible.com, Endless.com, Zappos.com, 6pm.com, and others).
As an example, here’s an excerpt from the 6pm.com’s message that has hit affiliate inboxes at midnight tonight:
6pm has worked with many California residents through Commission Junction. Unfortunately, a potential new law that may be signed by Governor Brown compels us to terminate this program for California-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers – including but not limited to those referred by California-based marketing affiliates like you – even if those retailers have no physical presence in the state.
As a result, we will terminate contracts with all California residents that are marketing affiliates of 6pm through Commission Junction as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date after the California law is enacted. In the event that the California law does not become effective before September 30, 2011, we withdraw this notice and this termination will not become effective.
Overstock.com has also announced that it is dropping its California affiliates. Jonathan Johnson, the president of Overstock
rebranded into O.co earlier this year, said that “Companies like O.co and Amazon and others are going to be forced to terminate their relationships with those affiliates rather than be forced to be unconstitutional sales tax collectors for the state of California.” This, as a result, will actually tax decrease revenue to the sate [listen to him here].
Much has been written (and said) on the law and its immediate ramifications in the course of the past 24 hours, and in what follows I’d like to link to 8 articles, blog posts and other discussions of the law that have caught my personal attention:
- Brown Signs Law Requiring Sales Tax on Online Purchases; Amazon, Overstock Axe State Affiliates by Jon Brooks of KQED News
- Amazon To Cut Off California-Based Web Affiliates video report at KTVU with participation by Mark Welch
- California Forced Amazon to Stop Advertising Here by Mark Welch
- The Affiliate “Big One” Hits: California Passes Catastrophic Nexus Tax by Britt Raybould
- An Open Letter To Jeff Bezos On Terminating The Amazon Affiliate Program In California by Danny Sullivan
- Thanks for Nothing, Jerry Brown by Trisha Lyn
- Governor Jerry Brown Passes Law to Destroy Small Business in California by Shawn Collins
- Merchants Terminating CA Affiliates thread at ABestWeb
If I have missed an article (or discussion) that must be linked to from here, please do add it through the “Comments” function below.