California Adopts Unconstitutional Internet Sales Tax Law; (aka Cuts Marketing Ties and Redirects Ad Dollars to California Customers

Free $20 Club O Accounts Preloaded with $10 in Club O Rewards Given to Customers in CA

Jul 01, 2011, 09:15 ET from, Inc.

SALT LAKE CITY, July 1, 2011 /PRNewswire/ --, also known as, Inc. (NASDAQ: OSTK) today announced that it will award free Club O accounts ($20 value) pre-loaded with $10 in Club O Reward dollars to top customers in California where the company canceled ad contracts because of the recently passed unconstitutional Sales Tax Law.

"California's new law that makes out-of-state retailers collect sales tax simply for having business relations with marketing affiliates in those states is unconstitutional," said CEO Patrick Byrne. "So we have severed relationships with all of our affiliates in California.  Like we've done in other states, we have taken the money we would normally pay those affiliates, and are using it to reward our best customers in those states. Any customer in California that has spent more than $300 in the past year will receive a free Club O membership (normally priced at $20) and their membership account will come preloaded with an additional $10 balance. Those qualifying that are already Club O members will also have $10 added to their existing Club O Rewards account and their membership extended for one year." has long opposed state laws designed to force out-of-state retailers to collect sales tax merely for using in-state ad services.  The company has mounted court challenges, citing Supreme Court decisions rendering these laws unconstitutional, and has now cut ties with local advertisers in Arkansas, Connecticut, Illinois, New York, North Carolina, New York and Rhode Island.

About (also known as, also known as, is Your Online Savings Engine offering brand-name merchandise at discount prices.  The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory distribution channel., headquartered in Salt Lake City, is a publicly traded company listed on the NASDAQ Global Market System and can be found online at and regularly posts information about the company and other related matters on its website under the heading "Investor Relations."® is a registered trademark of, Inc.™ and Savings Engine™ are trademarks of, Inc.® is a registered trademark and Club O™,™ and Your Online Savings Engine™ are trademarks of, Inc.   All other trademarks are the property of their respective owners.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding the date of the gift of the Club O membership, the amount of pre-loaded Club O rewards credit, and termination of affiliate marketers. Our Form 10-K for the year ended December 31, 2010, our subsequent quarterly reports on Form 10-Q, or any amendments thereto, and our other subsequent filings with the Securities and Exchange Commission identify important factors that could cause our actual results to differ materially from those contained in our projections, estimates or forward-looking statements.