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

Final Defendant Sentenced in GirlsDoPorn Case

Former adult producer Doug Wiederhold, previously a business partner of GirlsDoPorn owner Michael Pratt, was sentenced on Friday in federal court to four years in prison for conspiracy to commit sex trafficking.

'Group C' to Debut 'Woodman Casting X' Board Game

Gaming company Group C will debut its new industry-themed board game, “Woodman Casting X — The Game,” later this year.

FTC Takes Another Step Toward New 'Click to Cancel' Rule

The Federal Trade Commission (FTC) is negotiating the latest procedural hurdle in its effort to renew rulemaking concerning negative option plans, after a federal court previously vacated a “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions.

Pineapple Support, Brazzers to Host 'Navigating Relationships' Support Group

Pineapple Support and Brazzers are hosting a free online support group for performers to build and maintain healthy relationships.

Aylo, SWOP Behind Bars to Host 'Deplatforming' Community Panel

Aylo and Sex Workers Outreach Project (SWOP) Behind Bars will host a panel on creators’ rights and deplatforming on Feb. 10 at 3 p.m. (EST).

Hankey's Toys Unveils 'Peak' Prostate Dildo

Mr. Hankey's Toys has debuted the Peak, its new P-spot-targeting prostate dildo.

Adult Trade Group Pearl Industry Network to Debut at Taboo Vancouver

Pearl Industry Network (PiN), a new trade group for the adult industry focused on content creators, will debut at Taboo Vancouver adult lifestyle and wellness expo next week.

Kheper Releases 'Ride My Dick' Tickets

Kheper Games has debuted its new "Ride My Dick" sex act novelty coupons.

New Creator Platform 'OnlyPhones' Launches

OnlyPhones, a new phone-based creator platform, has officially launched.

AEBN Reveals Ariel Demure as Top Trans Star for Q4 of 2025

AEBN has published its top trans stars list for the fourth quarter of 2025, with reigning XMAs Trans Performer of the Year Ariel Demure landing atop the leaderboard.

Show More