CORRECTION: Overstock Cuts Marketing Ties in States Passing Unconstitutional Internet Sales Tax; Redirects Ad Dollars to Customers in Those States
Free $20 Club O Accounts Preloaded with $10 in Club O Rewards Given to 150,000 Customers in RI, NY, NC, and IL
In the news release, Overstock Cuts Marketing Ties in States Passing Unconstitutional Internet Sales Tax; Redirects Ad Dollars to Customers in Those States, issued 04-April-2011 by Overstock.com, Inc. over PR Newswire, the second paragraph, fifth sentence, should read " 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." Also the last paragraph should read "Club O is Overstock.com's customer rewards program, providing members with exclusive promotions, year-round free shipping, and 5% cash back on every purchase." The complete, corrected release follows:
SALT LAKE CITY, April 4, 2011 /PRNewswire/ -- Overstock.com, Inc. (NASDAQ: OSTK) (short cut: O.CO) 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 states where the company canceled ad contracts because of unconstitutional Sales Tax Laws.
"States passing laws making out-of-state retailers collect sales tax simply for having marketing affiliates in those states are violating the Constitution," said Overstock.com CEO Patrick Byrne. "So we have decided to sever our relationships with thousands of marketing affiliates in those states, take the money we would normally pay those affiliates, and use it to reward our best customers in those states. Any customer in these states 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. There are over 150,000 customers meeting this description, to whom we are in effect transferring $30 of value, for a total economic value of over $4.5 million."
Overstock.com 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 cut ties with local advertisers in all 4 states passing these laws.
The gifted Club O accounts will be established automatically for qualifying customers in Rhode Island, New York, North Carolina, and Illinois. To learn more visit www.overstock.com/clubo.
Club O is Overstock.com's customer rewards program, providing members with exclusive promotions, year-round free shipping, and 5% cash back on every purchase.
Overstock.com, Inc. (short cut: O.CO) is a 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. Overstock.com, headquartered in Salt Lake City, is a publicly traded company listed on the NASDAQ Global Market System and can be found online at http://www.overstock.com and http://www.o.co. Overstock.com regularly posts information about the company and other related matters on its website under the heading "Investor Relations."
Overstock.com® is a registered trademark and Club O™, O.co™ and Savings Engine™ are trademarks of Overstock.com, 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.