Overstock is the next company to drop affiliate programs in states considering or having passed affiliate nexus bills. While North Carolina, Rhode Island, and Hawaii affiliates are already seeing programs dropped by Amazon and Blue Nile, this time California affiliates are also getting the boot.
"It's painful to have to terminate these relationships with affiliates, simply because they live in states where counterproductive (and likely unconstitutional) laws are being passed," said Patrick Byrne, Chairman and Chief Executive Officer of Overstock.com. "However, politicians have to remember that a tax is a price that government charges for a service, and when they raise their prices, we're going to buy less of their services."
Last year, Overstock was one of over 200 companies to drop their affiliate program in New York, which was the first state to enact an affiliate tax. The cancellation affected 3,400 affiliates, 200 of which were active.
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