Overstock.com Cuts Off Referrer Payments in Four States

OverstockComLogo.jpgOverstock.com followed in the footsteps of Amazon and announced that residents of California, North Carolina, Hawaii and Rhode Island will no longer receive referrer payments for products sold through their Websites, according to Silicon Alley Insider.

The issue is the same one faced by Amazon: The states want Overstock.com to collect sales tax on affiliate sales as if the affiliate was actually a brick-and-mortar store selling its products.

California has not yet passed its e-commerce sales tax legislation, but Overstock.com appears to be preparing for that eventuality, Silicon Alley Insider reported.