Amazon Drops Affiliate Programs in 2 States Citing Taxes

SEATTLE — Amazon has closed its affiliate programs in Arkansas and Connecticut citing tax collection as the reason for the shut down.

The company said contracts with all Connecticut residents who participate in the Amazon Associates Program would be terminated immediately and contracts in Arkansas will terminate July 24, according to a report on CNET.com.

Local governments have tried to force Amazon to pay taxes in states where affiliates are located, although Amazon isn’t required to collect taxes where it has no physical presence.  

The online retailer has already closed affiliate programs in other states such as Illinois, Colorado, North Carolina and Rhode Island and is looking at doing the same in other states.

In letters sent to affiliates, Amazon blamed the budgets signed by the governors in Arkansas and Connecticut that force it to collect tax from online purchases. Because of these new state laws, the company said it was compelled to shut down the affiliate programs.

"We opposed this new tax law because it is unconstitutional and counterproductive," Amazon said in the letter to Connecticut affiliates.

"It was supported by big-box retailers, most of which are based outside Connecticut, 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."

Amazon’s CEO Jeff Bezos said that the way to fix this issue is through federal regulation.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

New Fansly Analytics Platform 'SlyKiwi' Launches

SlyKiwi, the new analytics platform exclusively designed for Fansly content, has officially launched.

Blush Debuts 'Dream Crush' Vibe

Blush has introduced the Dream Crush mini-vibrator from its Play With Me collection.

Vush, Kayla Jade Collab for Pleasure Product Collection

Sexual wellness brand Vush and performer Kayla Jade have partnered for a limited-edition line of pleasure products.

FPNCash Appoints Kimi Evans Head of Business Development

FPNCash has appointed Kimi Evans as its new head of business development.

XBIZ Expo Debuts New '3D' Hybrid Show Format, Set for Jan. 8-12

XBIZ Expo, the premier business-to-business event exclusively for product manufacturers, retail buyers and the broader pleasure community, will return this January with a new hybrid format designed to give qualifying participants more ways to conduct business.

CamModelDirectory Launches Platform Upgrade

CamModelDirectory has launched its CMD 3.0 platform upgrade.

Doja Cat Gives Nod to Motorbunny

Doja Cat has given a nod to Motorbunny in a social media post.

AEBN Publishes Popular Searches by Country for June, July

AEBN has released the list of popular searches from its straight and gay theaters by country in June and July.

Full Circle Debuts 'My Buddy' Anal Vibe Collection

Full Circle has introduced its new My Buddy collection of anal vibrators.

Lovense 'Gemini' Spotlighted on Wired.com

Lovense’s Gemini nipple clamps have been spotlighted on Wired.com.

Show More