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B&N has been charging for paper versions of public domain books for years. So has Penguin and a host of other publishers.
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That's what I was going to say. This isn't anything new.
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That's because the actual printing, warehousing, distributing etc. of these books cost money. Penguin in particular offers a lot of added valued, too, commentaries, etc. That's not true for selling the actual PG file, though.
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You have a good point but then you are going to slide into the territory of Amazon making content decisions which they are clearly reluctant to do and is a policy I support. As it has been pointed out, it is possible for a seller to add value to the Public Domain books ... with better formatting, commentaries, links to additional resources.. I've personally paid 99cents or a couple of books for Public Domain books that have value added and I haven't felt cheated.
My thought on this one is not only "Buyer Beware" but also the fact that Amazon will not only let a Kindle user sample a book before purchase, they will also refund a book up to 7 days after purchase.
So I really don't see trickery here.