BoingBoing has an article written by Cory Doctorow describing the plight of author Jim C Hines, who was independently offering some of his books through the Amazon site. Hines states that he had priced the books at $2.99 but Amazon repriced them at $.99. When he complained Amazon basically sent the guy a boilerplate response that said they may reprice books if they have found them offered elsewhere for a lower price. However, Hines maintains that the books were not offered elsewhere for a lower price.
I like Amazon, but they better be really careful here. They could find themselves in a major class action lawsuit with lots of bad publicity.