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

Satisfyer Signs On as Sponsor of XBIZ Honors After-Party

Satisfyer has enlisted as the sponsor of the XBIZ Honors after-party, a capstone celebration to the Pleasure Industry’s Biggest Night™.

Arcom-Targeted Sites Implement Age Verification in France

Five high-traffic adult websites based outside of France have implemented age verification as required under the nation’s Security and Regulation of the Digital Space (SREN) law, after receiving warnings from French media regulator Arcom.

Lovense 'Spinel' Vibrator Featured in Wired Review

Lovense's Spinel mini sex machine is featured in a new review on Wired.com.

Goddess Lilith Launches 'Adultpreneurs' Networking Site

Goddess Lilith has launched Adultpreneurs, a new community and networking site.

Adult Shoot Location Marketplace 'FckSpace' Launches

FckSpace, a new platform aimed at simplifying location sourcing for adult productions, is now live

Creative Conceptions Now Shipping Skins Sexual Health 'Kegels'

Creative Conceptions is now shipping the new Skins Sexual Health kegel balls.

Paradise to Host 'Happy Hour' Event at XBIZ Expo

Paradise Pleasure Products will host a special Happy Hour event during XBIZ Expo 2026.

Florida Attorney General Dismisses AV Suit Against Segpay

The Florida attorney general’s office on Monday agreed to dismiss claims against payment processor Segpay in a lawsuit over alleged noncompliance with the state’s age verification law.

Fleshlight, Ricky's Room Team Up to Launch New Product Line

Fleshlight and Ricky's Room have partnered to launch the new Fleshlight x Ricky's Room collection.

VVD Debuts Limited-Edition 'Rider Desire Black' Sex Machine

Pleasure brand VVD has introduced its limited-edition Rider Desire Black sex machine.

Show More