Overstock drops affiliates in several states

By Associated Press
July 1, 2009 | Comments (0)

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Following Amazon.com's lead, online discount retailer Overstock.com Inc. said Wednesday it is cutting ties with affiliate advertisers in California, Hawaii, North Carolina and Rhode Island in a move to avoid collecting sales taxes in those states.

The company said it is dropping their services because of the "eminent passage" of laws requiring Internet retailers to collect taxes if they have local affiliate advertisers.

Overstock.com ended its relationship with more than 3,400 of its New York advertising affiliates in May 2008 for the same reason. It still has a lawsuit pending against the state.

Affiliate advertisers are Web sites that refer customers to the Internet retailers, like Amazon or Overstock, to buy products.

Shares of Salt Lake City-based Overstock.com rose 83 cents, or 6.9 percent, to $12.79 in midday trading. The stock has changed hands between $6.34 and $29.59 in the past year.

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