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Amazon is evil. Have you seen what they do to my poor wallet?
For the record, I have heard of a couple of authors losing their accounts. Heard of more than a couple that had books banned. Heard of some blocking books too but those were usually reinstated after some tweaks.
Note: in almost all of those cases of accounts and banning: the author had published what they knew was against the TOS.
As per the customers: I have heard of Amazon not allowing returns on some accounts. One woman admitted to returning 75% of her purchases.
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