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Assume that everything on there is accessible by Amazon, then you will not be surprised. Remember the horrified users last year who were so stunned when Amazon came in overnight and deleted certain books from millions of devices.
The best advice seemed to be either to turn off the wifi or just to assume everything on there is viewable to them.
I am a bit more concerned that they have my debit card number and ask no security questions when I buyKindle books. Just click and it shoots the book to my iPad.
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