Amazon Drops Affiliate Programs in 2 States Citing Taxes

SEATTLE — Amazon has closed its affiliate programs in Arkansas and Connecticut citing tax collection as the reason for the shut down.

The company said contracts with all Connecticut residents who participate in the Amazon Associates Program would be terminated immediately and contracts in Arkansas will terminate July 24, according to a report on CNET.com.

Local governments have tried to force Amazon to pay taxes in states where affiliates are located, although Amazon isn’t required to collect taxes where it has no physical presence.  

The online retailer has already closed affiliate programs in other states such as Illinois, Colorado, North Carolina and Rhode Island and is looking at doing the same in other states.

In letters sent to affiliates, Amazon blamed the budgets signed by the governors in Arkansas and Connecticut that force it to collect tax from online purchases. Because of these new state laws, the company said it was compelled to shut down the affiliate programs.

"We opposed this new tax law because it is unconstitutional and counterproductive," Amazon said in the letter to Connecticut affiliates.

"It was supported by big-box retailers, most of which are based outside Connecticut, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue."

Amazon’s CEO Jeff Bezos said that the way to fix this issue is through federal regulation.

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

BasisDx Adds Expedited Results Option for 'Pro13' Home Testing Kit

PASS-certified home testing kit provider BasisDx has added a new option for expedited test results for its Pro13 kit.

Braindance Unveils '6DOF' VR Tech

Interactive virtual reality platform Braindance has debuted its new Six Degrees of Freedom (6DOF) VR technology.

Kiiroo, Pineapple Support Launch 'Empower Hour' Series on FeelHubX YouTube Channel

Kiiroo and Pineapple Support have teamed up to launch the “Empower Hour” series on the FeelHubX YouTube channel.

Kansas Law Firm Deploys Religion, Bunk Science While Recruiting Plaintiffs Under AV Law

Kansas-based personal injury law firm Mann Wyatt Tanksley is promoting debunked scientific theories and leveraging religious affiliation against the industry while it seeks potential plaintiffs for lawsuits against adult companies under the state’s age verification law.

UK Tech Secretary Lists Age Verification Among OSA Priorities

Peter Kyle, the U.K.’s Secretary of State for Science, Innovation and Technology, on Wednesday made public a draft version of his priorities for implementing the Online Safety Act (OSA), including age verification.

Orion Debuts 'Suck-O-Mat 3' Masturbator

Orion Wholesale has introduced the third edition of its Suck-O-Mat masturbator.

Biird Debuts 'Ohwii' Glass Dildo

Biird has introduced Ohwii, its new double-ended glass dildo.

AEBN Publishes Popular Seraches by Country for September, October

AEBN has released its list of popular searches from its straight and gay theaters in all 50 states and the District of Columbia.

Avery Jane Featured on 'Adult Time Podcast'

Avery Jane is the latest guest on the “Adult Time Podcast,” hosted by studio CCO Bree Mills.

Sportsheets Releases New Training Video for 'Edge' Line

Sportsheets has released its latest training video, titled "Edge Product Training," the third in a series hosted by Brand Ambassador Rin Musick.

Show More