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Originally Posted by DiapDealer
Nobody really knows. The logs that the various devices accrue are full of lots of info about the books you're reading, the cell towers you were connected to while reading (if you have 3g of course), DRM status, and more. But the encrypted "phone home" packets that have been captured and sniffed over the years have been of a size that most have agreed aren't really large enough to transmit that data (even in pieces). They're basically keep-alive-ping sized. It's more likely that the logs are available to CS personnel when they obtain permission to "access" your device for trouble-shooting purposes.
I'm not trying to give them a free pass or anything, there's stuff being logged that could certainly be contrued as privacy-violating in nature. It's just that while I have no trouble believing they have the technological capability to gather the data they're logging, I've seen no evidence that it's actually being done. Make of it what you will.
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This doesn't guarantee anything, but when the PW1 was first released I reported the bug where the light didn't turn off sometimes. One of their developers called me directly to ask some questions and ask for permission to pull the logs from the device. I gave him permission, and he did so. It didn't require any interaction on my part, so they definitely have the ability to pull them, but he did explicitly ask for my permission first, so it appears that at the very least they don't do it as a matter of course.