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 © 2026 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

FSC Hails Members, Allies in SCREEN Act Victory

The Free Speech Coalition (FSC) released a statement today praising its members and allies after a successful lobbying effort to prevent the SCREEN Act, a nationwide age verification bill, from advancing out of the Commerce Committee for a full vote on the Senate floor.

Lovehoney Group Resolves Patent Disputes With Maia Toys, CalExotics, Doc Johnson

Lovehoney Group announced in a statement that it has settled patent disputes with Maia Toys, CalExotics and Doc Johnson Enterprises regarding products protected by the company’s intellectual property rights.

SCREEN Act Stalls in Senate Committee Over Technicality

The Senate Commerce Committee on Wednesday voted to approve the SCREEN Act, which would mandate nationwide site-based age verification of users seeking to access adult content online, but a procedural issue blocked the bill from advancing to the full Senate.

Lovense Debuts Upgraded 'Gush 2' Motion Sensing Masturbator

Lovense has introduced an updated version of its Gush 2 male masturbator, which now includes motion-sensing control capability.

DarkFans Adds Time-Limited Content Pricing

DarkFans has debuted its Configure Limits feature for automating content promotions.

Clips4Sale, Free Speech Coalition Partner for 'Creator Workflow' Webinar

Clips4Sale (C4S) and Free Speech Coalition (FSC) have partnered for a webinar titled “Organization & Workflow: Simple Systems for Busy Creators.”

Orgie Introduces New Wellness Products

Orgie has debuted three new wellness products.

Pineapple Support, Streamate Partner for 'Self-Parenting' Support Group

Pineapple Support and Streamate are hosting a free online support group focused on self-care for performers, titled "Self-Parenting: Becoming Your Own Safe Space."

Nerds of Porn to Relaunch Site Through MyMember.site

Nerds of Porn is relaunching its membership site through MyMember.site on Aug. 14.

Show More