Another large merchant was forced to terminate affiliates, this time in California.  From Overstock (this is an excerpt of their email to affiliates in California): Dear Affiliate: We regret to inform you that the North Carolina, Rhode Island, California and Hawaii state legislatures have or are about to pass unconstitutional tax nexus and collection laws in an attempt to force Internet retailers to collect and remit sales tax on all sales to residents of these states.

These legislative measures purport to establish a state tax nexus on the basis of contracts with local advertising affiliates, even when none exists under U.S. Supreme Court precedent.

Due to the passage or eminent passage of these unconstitutional laws, Overstock regretfully must discontinue its relationships with all of its advertising affiliates in these states.

This is only the beginning, I fear.  What can you do?  Read up on the latest news and action items here on our blog.