Standard Web Affiliate Programs Illegal For Wine in California

The web’s near-ubiquitous affiliate programs, such as those offered by Amazon Associates, are illegal in California for wineries and retailers as well as bloggers and websites, according to information issued today by the state Department of Alcoholic Beverage Control.

The ABC’s opinion came as the result of a query made by Wine Industry Insight on August 13.

STANDARD AFFILIATE PROGRAMS OFFER A PERCENTAGE OF PURCHASE

Affiliate programs like Amazon Associates, are distinguished from standard advertising by offering the affiliate site a percentage of the purchases made by customers who arrive at the merchant side by clicking on a link or banner from the affiliate. Amazon, for example, offers affiliates up to 15% on purchases, although four to five percent is most common.

Anyone — blogger, web site owner etc. — can join Amazon’s affiliate system, and put a banner (or similar) advertisement on the site. Then, if a viewer clicks on the ad, goes to Amazon and buys a book (or any of the other items sold), the affiliate receives a small percentage of the sale.

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Also In This Article:

The full text of the following sections is available to VIP Premium Subscribers).

• ABC TRADE ENFORCEMENT SAYS PROFIT SHARE IS ILLEGAL
• INVESTIGATIONS NOT “MADE IN A VACUUM”
• OPINION HOLDS FOR ALL CALIFORNIA ABC LICENSEES
• CONSISTENT WITH JUNE 2009 OPINION

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