Today I received the first of many probably bans on affiliates located in
New York State.
PLANET ENTERTAINMENT, INC. DBA DVDPLANET.COM
POLICY PROHIBITING THE USE OF NEW YORK AFFILIATES
May 27, 2008
Due to recent changes in New York law relating to the collection of sales
tax, Planet Entertainment, Inc. dba DVDPlanet.com will no longer offer its
products for sale through affiliates or other representatives (the
“Affiliate Network”) that are residents of New York State and that
are paid a commission on such sales. Accordingly, DVDPlanet.com is hereby
immediately terminating all participation in the Affiliate Network by all
affiliates that are New York State residents through all performance marketing
networks. A New York State resident is (a) any individual who maintains a
permanent place of abode in New York State and (b) any corporation incorporated
under the laws of New York and (c) any corporation, association, partnership
or other entity doing business or maintaining a place of business in New
York State. (See New York Sales and use Tax Regulations Section 526.15, 10
NYCRR §526.15.)
Therefore, if you are a New York State resident, your participation in the
Affiliate Network is hereby immediately terminated and you must immediately
cease and desist from any referrals of sales to DVDPlanet.com and remove
any links to all websites operated by Infinity Resources, Inc. and its
subsidiaries, including without limitation Planet Entertainment, Inc. dba
DVDPlanet.com, from your website. [The change in the law does not require
DVDPlanet.com to cease doing business with or through affiliates who simply
advertise DVDPlanet.com’s products without compensation or who are paid
a fixed amount on a “per click-thru” basis (“Affiliate
Exemption”).]
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Overstock.com Drops 3,400 NY Affiliates, taking their income with
them.
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Thank you New York...not only will you not get any tax money, you are taking
bread out of the mouths of your own citizens by cutting off income.
Short sighted and ignorant legislation will result in a net loss to the state
because income tax collected on revenue from affiliate banners will drop
off. Did you really think internet retailers would let you have your
way with the internet? As you can see, those with affiliate banner
programs need only pull the plug on banners in your state. You get no tax
and your citizens lose a source of income.
