Will Overstock have to Close or Move their Affiliate Program?

According to Overstock.com's Press Release yesterday, the company has terminated more than 3,400 affiliates residing in New York:

Overstock.com, Inc. (Nasdaq: OSTK) announced today that it has notified its more than 3,400 New York-based affiliate advertisers that as of June 1, 2008 they can no longer provide advertising for Overstock.com until either New York changes its controversial new internet consumer tax law or the courts say the law is unenforceable. On June 1, the controversial new law will require internet retailers to turn off their New York-based ad partners or collect an up to 9.5% sales tax from all New York internet customers.

But wait, Overstock's entire affiliate program is with Linkshare, a New York based company, and Linkshare earns a percentage of EVERY OVERSTOCK AFFILIATE TRANSACTION!!!

So based on this, it would appear that Overstock would still be liable for the 9.5% sales tax from, as would every Linkshare merchant.

Perhaps pissing off your 3,400 new york based affiliates in a knee jerk reaction wasn't that best idea since it doesn't really solve the problem?

It's all about the O...  In this case, O crap...

Comments

[Evan]

Moving it over to CJ.