California Ban on Amazon Affiliate Program
Summary: Due to a new California state tax law signed by Governor Jerry Brown on June 29, 2011, Amazon has terminated its Associates Program for all California residents. This legislation requires out-of-state online retailers with affiliates in California to collect sales tax, prompting Amazon to sever ties with its local affiliates to maintain its tax-exempt status in the state. Existing earnings will be paid, but future referrals will not generate commissions.
Official Notice from Amazon Associates
Hello,
Unfortunately, Governor Brown has signed into law the bill that we emailed you about earlier today. As a result of this, contracts with all California residents participating in the Amazon Associates Program are terminated effective today, June 29, 2011. Those California residents will no longer receive advertising fees for sales referred to Amazon, Endless, MYHABIT, or SmallParts. Please be assured that all qualifying advertising fees earned before today will be processed and paid in full in accordance with the regular payment schedule.
You are receiving this email because our records indicate that you are a resident of California. If you are not currently a resident of California, or if you are relocating to another state in the near future, you can manage the details of your Associates account settings. And if you relocate to another state in the near future please contact us for reinstatement into the Amazon Associates Program.
To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to California residents and will not affect your ability to purchase from Amazon properties.
We have enjoyed working with you and other California-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents. As mentioned before, we are continuing to work on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.
Regards,
The Amazon Associates Team
Why Did California Ban the Amazon Affiliate Program?
The termination of the Amazon Affiliate Program in California is a direct result of state legislature passing a "nexus tax" law. This legislation dictates that any out-of-state retailer who maintains a relationship with in-state affiliates (such as bloggers, publishers, or web designers) is required to collect and remit California state sales tax on purchases made by state residents. In response, Amazon chose to disband its affiliate network in the state rather than comply with the complex and costly tax collection requirements.
Frequently Asked Questions
What happens to my unpaid affiliate earnings?
Amazon has explicitly stated that all qualifying advertising fees earned prior to June 29, 2011, will be fully processed and paid out according to their standard payment schedule. Your past commissions are secure.
Can I rejoin the program if I move out of California?
Yes, if you relocate to a state where the Amazon Associates program is still active, you can contact their support team to reinstate your affiliate account and resume earning commissions.
Does this affect my ability to buy from Amazon?
No, this legislative change strictly impacts the affiliate monetization program. California residents are still fully permitted to make purchases on the platform without any interruptions.