Overstock cuts its NY affiliates due to tax law

Share this content:

In response to New York's recently enacted “Amazon tax” law for e-commerce firms operating within the state, discount retailer Overstock.com has notified more than 3,400 New York-based affili­ate advertisers that their relation­ship will end as of June 1, when the law goes into effect.

“We hope this termination period will only be temporary,” said Jonathan Johnson, SVPof corporate affairs at Overstock.com. “We think that the New York law is unconstitutional and we think that lawmakers have made a mistake that is hurting small businesses in New York.”

The New York State law, approved last month, will require out-of-state online retailers to begin collecting sales taxes on purchases shipped to New York addresses, meaning that Amazon.com and Overstock, each of which has no employees or operations in New York, will be required to collect state taxes because several of its affiliates are based in the state.

Amazon is challenging the law in New York state court. Overstock may join Amazon or begin its own court battle, Johnson said. If the law is dismissed, Overstock will reestablish its relationships with all of its New York-based affiliates. The retailer believes that if it cuts out its affiliate advertisers based in the state, it will avoid charging customers sales tax.

“When it came down to choos­ing between our customers and our affiliates, it was an easy choice,” said Johnson.

Sign up to our newsletters

Company of the Week

PAN Communications is an award-winning integrated marketing and public relations agency for B2B technology and healthcare brands. PAN's data-driven approach allows the firm to specialize in public relations, social media, content and influencer marketing, and data and analytics. PAN partners with brands to create unique, integrated campaigns that captivate audiences.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above