SALT LAKE CITY, April 8, 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 Arkansas where the company canceled ad contracts because of an unconstitutional Sales Tax Law that Governor Beebe signed. Overstock has also cancelled ad contracts in RI, NY, NC, and IL.
"We will cut marketing ties in any state passing laws making out-of-state retailers collect sales tax simply for having marketing affiliates in those states," said Overstock.com CEO Patrick Byrne. "We have ended our relationships with the all marketing affiliates in Arkansas, and we will take the money we would normally pay those affiliates, and use it to reward our best customers in Arkansas. Any customer in that state 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 about 160,000 customers in all the states meeting this description."
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 five 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 5% rewards back on every purchase, free shipping on every order, and exclusive shopping events.
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.
SOURCE Overstock.com, Inc.