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Performance Marketing Alliance Files Amicus Brief with New York State Supreme Court

September 10, 2009 by Shawn Collins

The Performance Marketing Alliance (PMA) has announced the filing of an amicus brief in support of Amazon.com’s appeal of the advertising tax in New York State.

The brief explains that affiliates provide a form of Internet-based advertising that is closely analogous to traditional print advertisements distributed by a catalog retailer, and do not constitute a physical presence for an ecommerce merchant in any state. Affiliates sell no products, collect no payments from buyers and make no deliveries. They have no further involvement in the sales and marketing process beyond posting the advertisement.

The brief maintains that the statute harms the public interest by punishing performance marketing, a highly efficient approach to advertising which has allowed thousands to make a living through electronic advertising on the Internet. Further, the revenue stream generated from performance marketing has allowed many small businesses and individuals to accelerate the development of their Web sites, facilitating the more rapid diffusion of free information to the public that is the hallmark of the Internet.

Amazon filed its appeal on July 13, 2009, in the New York State Supreme Court Appellate division. The state of New York is expected to file a response by September 16, 2009.

Press release: Performance Marketing Alliance Moves to Reverse Unfair Tax Legislation Threatening New York Business Owners

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