Okay, response from Kobo:
You can request the updated file if you already own it. There is no notification process.
Quote:
Unfortunately, the book content won't be updated automatically to readers library and we don't notify the readers.
When they contact kobo customer care, we can replace the content for them. You can advise them to contact us at help@kobo.com.
We are very sorry for the inconvenience by this.
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So in the case of Executive Lunch, if I decided it was pertinent enough, I could blog that I changed the file and anyone who follows my blog could request the update (for that matter if they wanted the new file, I'd be happy to just email them the epub myself. But that might cause them confusion because the old one would be sitting in their kobo library). But there doesn't appear to be a way for anyone to know unless the author/publisher/another reader told them.
Still working on the Amazon stuff to make sure I understand it correctly. I plan to at least do the auto-update option and then see how long it takes. The one time I used it before (I added illustrations to Tracking Magic) it took MONTHS for people to get the update.