As the result of a new bill passed by Governor Jerry Brown in California, Amazon will be terminating its service contracts for all Amazon Associates members residing in California. The new bill, which requires that taxes be collected on all sales by online retailers, extends its reach to “California-based marketing affiliates” which includes the referral status from residents participating in the Amazon Associates program. All current participants should have received an email covering the details from Amazon.com in the last few days, as the termination went into effect as of June 29, 2011. Here are some excerpts from the emails that were sent out:
Unfortunately, Governor Brown has signed into law the bill that we emailed you about earlier today. As a result of this, contracts with all California residents participating in the Amazon Associates Program are terminated effective today, June 29, 2011. Those California residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned before today will be processed and paid in full in accordance with the regular payment schedule.
We oppose this bill because it is unconstitutional and counterproductive. It is supported by big-box retailers, most of which are based outside California, 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. We deeply regret that we must take this action.
[…] we are continuing to work on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.
The change does not affect any participants who reside outside of California, and those services will continue as normal. If a participant has or is planning to move to another state, they can contact Amazon to be reinstated into the program here.