[mellie]

While at Think Tank a few merchants and affiliates asked me to simplify the steps involved to reinstate NY affiliates. I posted the easy version on my blog in a series of posts and am including them here. Each step is a separate post.
Please if there are any questions please ask and we'll all try to help.
Just a reminder, that although we consulted with a NYS tax attorney to draft documents these posts are not designed to replace the advice of your own lawyer or accountant.

Step One to follow.

[mellie]

Step One
Add some terms to your affiliate agreement.

Prohibition against solicitation activities by New York State resident affiliates.

As a condition of its participation in the (Fill in Merchant Company Name) Affiliate Program, Affiliate agrees that its solicitation activities on behalf of (Fill in Merchant Company Name) within the State of New York shall be limited to providing a link on Affiliate’s website to the (Fill in Merchant Company Name’s) own website. Affiliate acknowledges that under current New York State law, further solicitation and promotional activities by Affiliate within New York State may subject the (Fill in Merchant Company Name) to liability for collecting New York State sales tax on all sales to New York customers. Therefore, as a condition of participation in the (Fill in Merchant Company Name) Affiliate Program, Affiliate is prohibited from engaging in any solicitation activities in New York State intended to refer potential customers to the (Fill in Merchant Company Name), including, but not limited to: distributing flyers, coupons newsletters and other printed materials, or electronic equivalents of such materials; engaging in verbal solicitation, including in-person referrals or initiating telephone calls; and sending emails intended to refer customers to the (Fill in Merchant Company Name).

[mellie]

Step 2

Each year, by May 31, obtain from affiliate signed document stating they adhered to the guidelines. Add lines for affiliate to print their name, sign their name, and print their postal address. NYS reqires the contact info. Merchants keep document on file.

Here is a sample Affidavit or Proof of Compliance.

Proof of compliance with prohibition against solicitation

In accordance with TSB 083.1, I, Affiliate’s Name do hereby swear to the following:

During the past year, (fill in year June 01 200x- May 31, 200x) I have adhered to the guidelines set forth in my affiliate agreement. I have not engaged in any of the prohibited activities including, but not limited to: distributing flyers, coupons newsletters and other printed materials, or electronic equivalents of such materials; engaging in verbal solicitation, including in-person referrals or initiating telephone calls; any direct to merchant pay-per-click activity: and sending emails intended to refer customers to the (Fill in Company Name). The only promotional methods I have used are promotion of my own website and have not directly solicited on behalf of (Fill in Company Name).

[mellie]

Step 3
Step 3 applies only to member or group sites. These sites must include on their website a notice reminding their members to follow the guidelines and not solicit. Posting this disclaimer on a site only applies to member/group sites and not the average affiliate.

Sample Statement for Member or Group Sites

Members are prohibited from engaging in any solicitation activities in New York State intended to refer potential customers, including, but not limited to: distributing flyers, coupons newsletters and other printed materials, or electronic equivalents of such materials; engaging in verbal solicitation, including in-person referrals or initiating telephone calls; and sending emails intended to refer customers.