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  1. #1
    ABW Ambassador Packy's Avatar
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    Networks Need to Protect NY Affiliates
    The biggest thing that is worrying me right now are the emails from merchants stating that NY affiliates are being dropped, Sales after May 31st will not receive commissions!

    I'm curious as to what the networks are doing about this? They need to add some terms, update their TOS to protect NY affiliates.

    Here it is June 5th and emails are still coming in. How are we to know as an affiliate that we won't be getting an email from a merchant come June 30th or July 30th stating that we have been dropped and no commissions after May 31st will be paid?

    I think the networks really have to add something to stop the merchants from doing this if they haven't already done so. JMO of course I'm sorry if this has already been brought up but I counldn't find it.

  2. #2
    Affiliate Manager Steve Root's Avatar
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    Information from CJ?
    Has anyone received any guidance from CJ?

  3. #3
    Moderator MichaelColey's Avatar
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    After the way CJ allowed Staples to lower commissions to $0 for most of their affiliates for two months, I really don't think you have much hope of being "protected" by them. The big networks have shown time and time again where their loyalties lie.
    Michael Coley
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  4. #4
    Advocate mellie's Avatar
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    I posted somewhere questioning the legality of dropping affiliates retroactively. I know Onlineshoes, Sillohettes and Karmaloop are the three that come to mind. Karmaloop actually made a point of saying they would reverse any sales that came in after the 30.

    Since it's related, here's the link there were a couple comments. http://forum.abestweb.com/showthread.php?t=106267
    Last edited by mellie; June 5th, 2008 at 02:51 PM. Reason: adding a link to related post
    Melanie
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  5. #5
    Moderator MichaelColey's Avatar
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    Speaking of KARMA, wouldn't it be ironic if those terminations don't actually protect the merchants. If they have $10k in NY affiliate sales shipped to NY residents in the previous four quarters, I don't see any exclusion in the law saying "but if you terminate those affiliates none of this applies". I would think the list of merchants terminating NY affiliates would be a prime list of merchants for NY to go after, because the terminations basically assure NY that they did have over $10k in qualified sales.
    Michael Coley
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  6. #6
    ABW Ambassador Packy's Avatar
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    Quote Originally Posted by MichaelColey
    Speaking of KARMA, wouldn't it be ironic if those terminations don't actually protect the merchants. If they have $10k in NY affiliate sales shipped to NY residents in the previous four quarters, I don't see any exclusion in the law saying "but if you terminate those affiliates none of this applies". I would think the list of merchants terminating NY affiliates would be a prime list of merchants for NY to go after, because the terminations basically assure NY that they did have over $10k in qualified sales.
    I agree! The retroactively just doesn't seem to fit. As of June 1st you would think any merchant that has an affiliate in NY whether they pay commissions or not is fair game for NY depending on how the courts interpret this law. On June 1st I was an affiliate of merchants trying the retroactive May 31st thing meaning they had a presence in NY if the courts uphold this tax law and rule that it's legal. I'm not a lawyer though so who knows what will happen.

    I have to agree again Michael about CJ protecting affiliates. It will be interesting to see if they go after their 30% of commissions though for sales after May 31st! One thing I know is that if a commission is taken away from me that merchant will never find a spot on my websites.

    I thought I read somewhere that Brian (sas) advised all his merchants about the new law. It would be interesting to hear Brian's take on what the networks can or may do about stopping the merchants from taking commissions earned after May 31st if a NY affiliate wasn't terminated before the deadline.

  7. #7
    Analytics Dude Kevin's Avatar
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    Speaking of KARMA, wouldn't it be ironic if those terminations don't actually protect the merchants. If they have $10k in NY affiliate sales shipped to NY residents in the previous four quarters, I don't see any exclusion in the law saying "but if you terminate those affiliates none of this applies". I would think the list of merchants terminating NY affiliates would be a prime list of merchants for NY to go after, because the terminations basically assure NY that they did have over $10k in qualified sales.
    There are people in Albany aware of the Merchants Droppong New York Affiliates thread.

    Watching with interest from 2 angles, actually
    Kevin Webster
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  8. #8
    http and a telephoto
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    Quote Originally Posted by sroot
    Has anyone received any guidance from CJ?
    CJ isn't going to give you guidance. They have no clue themselves and are just telling merchants to check with their own lawyers.
    Deborah Carney
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  9. #9
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    I was away yesterday and when I saw that email from Karmaloop I was Pi$$ed! This doesn't even seem legal to me - I will be in touch with Linkshare not to mention my attorney. I think Michael has a point in regards to how this may affect them as to the amnesty. This is a point to keep in mind when the NY affiliates meet.

  10. #10
    Affiliate Manager Matthew Taylor's Avatar
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    Quote Originally Posted by loxly
    CJ isn't going to give you guidance. They have no clue themselves and are just telling merchants to check with their own lawyers.
    Thats absolutely right. When I contacted them weeks back, they told me they wsere not at liberty to discuss.

  11. #11
    Analytics Dude Kevin's Avatar
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    They weren't at liberty to discuss it? I'd send them a copy of your receipts for monies you've paid to them, and see if that reminds them of their role in the merchant/affiliate relationship.
    Kevin Webster
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  12. #12
    ABW Ambassador
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    Seems to me, there is not enough clarity in the law for most networks to want to be considered responsible if their advice comes back to bite a company. Much of this law seems to be destined for the court room.

    As for these merchants, if you really have an issue, contact your NY state rep or tax agency and ask them about it. I am sure they would love to hear about it.

    Chet

  13. #13
    Affiliate Manager Matthew Taylor's Avatar
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    We have a call with them this week. Ill let you know what I hear.

  14. #14
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    FYI - From what I have heard CJ is sending all NY Affiliate Tax questions to newyorkinquiryatcjdotcom where they will respond in 2 days.

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