Amazon Affiliate members in California got a rude awakening this morning when they received and email from Amazon telling them that all Affiliate programs would be terminated by September 30th.  This is in reaction to a proposed CA law that would tax Amazon purchases because Affiliate Account holders (workers) live and work in the State.

The whole thing is up for debate but we found the last sentence in the letter (whole thing pasted below the fold):

We are also working on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.

We noted yesterday that Amazon was getting their own ad network, which would go head to head with Google and others. expand full story