Sunday, November 21, 2010

Overstock.com cuts ties with Hawaii affiliates - Pacific Business News (Honolulu):

http://allhuntingaccessories.com/Bags/Hunting-Bag/
The Salt Lake City-based company announced Wednesday that it sent notices to all of its affiliate advertisers in California, Hawaii, North Carolina and Rhode Island that it is droppinf their services because of new state laws requiringg Internet retailers to collect taxes if they have locaol affiliates. “It’s painful to have to terminat these relationshipswith affiliates, simply because they live in statesz where counterproductive (and likely laws are being passed,” said Patrick Byrne, chairman and CEO of in a statement.
“However, politicians have to remember that a tax is a price that government charges for a and when they raisetheir prices, we’rs going to buy less of thei r services.” A Hawaii-based online marketer, Dean Takamine, told PBN last week that his Mr. Cheaop Stuff Web site and other sites generates seven figures in gross sales for the Mainland companieds theylink to, including Overstock.com. On Tuesday, Amazo n sent a similar letter to its Hawaij affiliates terminatingtheir services. Gov. Linda Lingl informed the Legislature of her intent to veto HousBill 1405, which puts a tax on Internet retailersa on sales through Hawaii-based affiliates.
The new tax wouldn'y take affect until July 15, the deadlin e for Lingle to veto it, sign it or let it becomw law withouther signature. Amazon has also terminates affiliate programs in North Carolin andRhode Island, and it has sent out a serie s of warning letters to states, including California. Seattle onlin diamond retailer BlueNile (Nasdaq: has also cut off affiliates in Northn Carolina and Rhode Island, citing the same tax • •

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