Amazon, the world's largest Internet retailer, said in a
complaint filed in the Supreme Court of the State of New York
on April 25 that the new law, passed by the state legislature
in early April, was unconstitutional, vague and overly broad.
Through its "Associates Program," the company pays
unaffiliated Web site operators around the country a commission
if they advertise Amazon on their sites. Those ads often allow
consumers to click through from the advertiser's Web site to
Amazon.
The new law presumes that this amounts to solicitation of
business in the state, a claim Amazon denies. Amazon has no
"substantial" physical presence in the state, and independent
advertisers are not authorized to act as Amazon's agents,
according to the company's complaint.
Furthermore, Amazon claims the lawsuit unfairly singles out
the company.
Seattle-based Amazon wants the law be declared invalid and
to be awarded costs of the legal proceedings.
Besides newly appointed New York Governor David Paterson,
Amazon also named the commissioner of New York's state
department of taxation and finance as a defendant in the case.
Amazon said it had no further comment on the case.
(Reporting by Alexandria Sage; Editing by Braden Reddall)
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