Amazon Terminates Thousands of Affiliates – Uses Them to Fight Colorado Sales Tax Legislation #noadtax

In spite of the fact that Colorado affiliates were able to get affiliate nexus language removed from HB 10-1193, Amazon still sent termination letters to thousands of Colorado affiliates, informing them they are being dropped today without notice. What is really crazy about this is that there is no affiliate nexus language, CO affiliates have done nothing wrong AND most of them are selling Amazon products to consumers in others states or internationally as well, and even that out-of-state business will be ended for these unfortunate affiliates. (Be sure to read, what you can do at bottom of this post!)

Colorado affiliates are obviously upset and many will lose significant income over this. But the affiliate community at large is also very upset by this move for a number of reasons. 1) This could set a precedence and other merchants could follow suit EVEN THOUGH affiliates are not creating nexus for merchants that sell in Colorado. 2) It appears to many that Amazon is doing this in order to get affiliates to fight the legislation for them.

The letter Amazon sent to affiliates, stated in part: “if Colorado would repeal the current law or follow the constitutional approach to collection, we would welcome the opportunity to reinstate Colorado-based Associates. You may express your views of Colorado’s new law to members of the General Assembly and to Governor Ritter, who signed the bill.”

Melanie at Affiliate Advocacy and the PMA explain what happened.

Amazon Removes Colorado Affiliates and Why

Colorado – bad turn by Amazon

Revenews provides an overview too and Franklin Banker, in comments, really sums up the feeling of many Colorado affiliates. Amazon Terminates Colorado Affiliates, Joins Growing List of Advertisers

Franklin Banker commented:

This is very contradictory and seems to be a punitive action against Colorado affiliates who are not focusing their efforts only in Colorado, but across all markets in the US and abroad.

Why fire the affiliates?

I can only guess that they are doing this to get us back to the Capital to try to get the bill repealed instead of mounting their own legal challenge.

After all, the new bill HB10-1193 now has no mention of affiliates in it at all. Why terminate affiliates at all? Under the previous model in New York, Rhode Island and North Carolina the term “affiliate” was in the bill, making it a bit more understandable.

The Colorado bill does not mention affiliates

The issue is one of legality and compliance, and no longer focuses on affiliates due to the rewrite of the bill. There is absolutely no reason to fire the affiliates now, so why do it?

Maybe this is cheaper for them than mounting a legal challenge now. Perhaps they want to see if we can get the bill repealed?

Other commentary:

Amazon Fires Its Colorado Associates – O’Reilly Radar

Amazon Reacts To Colorado Internet Sales Tax Measure By Firing Its Colorado Associates – HuffingtonPost


Affiliate Advocacy is having an advertising tax conference call tomorrow March 9. Get the info and register for the call. Affiliate Advocacy Conference Call Affiliate Legislation March Update

The PMA is encouraging CO affiliates to contact their merchants to educate them regarding the fact that the legislature had nothing to do with affiliate nexus. Information and a sample letter is available in the Colorado affiliates Google Group.

Last, but not least MERCHANTS, THIS IS A MUST READ! What Will Guide You

1 Comment on Amazon Terminates Thousands of Affiliates – Uses Them to Fight Colorado Sales Tax Legislation #noadtax

  1. Received the same email in march in my Inbox. This sucks big time. But with so many initiatives going on in other states at the moment as well, affiliates better start fighting back before it is too late like for us in Colorado.

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