Wednesday, June 29, 2011

Notice of Contract Termination Due to Potential New California Law

With regard to the recent email I just received from Amazon Associates (see below).

Earth to Governor Moonbeam, come in please!  Crushing local small businesses in order to prop up the coffers of the government eventually leads to reduced tax incomes.  What you're doing will help short term and hurt you worse long term.  Note that one of the options that Amazon suggests is relocating business to avoid taxes.  I'm sure that would help your tax revenues as well.  All we need is yet another reason for businesses to leave California.

For well over a decade, the Amazon Associates Program has worked with thousands of California residents. Unfortunately, a potential new law that may be signed by Governor Brown compels us to terminate this program for California-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by California-based marketing affiliates like you - even if those retailers have no physical presence in the state.
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.
As a result, we will terminate contracts with all California residents that are participants in the Amazon Associates Program as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date if the California law is enacted. In the event that the California law does not become effective before September 30, 2011, we withdraw this notice. As of the termination date, California residents will no longer receive advertising fees for sales referred to , , MYHABIT.COM or . Please be assured that all qualifying advertising fees earned on or before the termination date will be processed and paid in full in accordance with the regular payment schedule.
You are receiving this email because our records indicate that you are a resident of California. If you are not currently a resident of California, or if you are relocating to another state in the near future, you can manage the details of your Associates account here . And if you relocate to another state in the near future please contact us for reinstatement into the Amazon Associates Program.
To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to California residents and will not affect their ability to purchase from , , MYHABIT.COM or .
We have enjoyed working with you and other California-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents. We are also working on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.
The Amazon Associates Team


elrond said...

Wow. I had no idea you were so rude and out of touch. Really sad, because I have totally enjoyed your blog and was so very impressed that unlike most people you actually do help.

I wrote a very long post about this, but then realized that since you started you post with "Governor Moonbean" you really aren't amenable to rational discussion. You have in fact, fallen prey to several lies that Amazon has feed you. Sorry.

Thank you very much for you great advice in the past and I wish you the very best of luck.

Oh and don't forget to exercise your right to vote. Please feel free to exercise your right to vote with you feet and leave, I hear New Zealand is very nice.

brucearmstrong said...

Yep, that's me. Mr rude and out of touch.

Read the Wikipedia entry for Jerry Brown. Govenor Moonbeam is a nickname of his from back in his first term as govenor back in the 1970s.