This story is gaining quite a bit of traction in the book-o-sphere:
A couple of days a go, my friend Linn sent me an e-mail, being very frustrated: Amazon just closed her account and wiped her Kindle. Without notice. Without explanation. This is DRM at it’s worst.
Linn travels a lot and therefore has, or should I say had, a lot of books on her Kindle, purchased from Amazon. Suddenly, her Kindle was wiped and her account was closed. Being convinced that something wrong had happened, she sent an e-mail to Amazon, asking for help.
Amazon wrote back with a vague e-mail suggesting that Linn's "account is directly related to another which has been previously closed for abuse of our policies." Linn has no idea what the hell they're talking about, but Amazon refuses to elaborate. And now all the books she bought from Amazon are gone. This is all totally legal, because you don't own the e-books you buy from Amazon.com. They license them to you, like software, and they can end the agreement whenever they want, for no reason. This is the sort of thing that bloggers have been writing about since Amazon first started selling Kindles. It's not just alarmist propaganda. This is a real thing that can happen to anyone.