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From what Kobo CS told me directly they generally do not push new versions to accounts that have previously purchased a book, it must be requested by the user. Now this differs from what David is saying so maybe things have changed?
I do know that often I've run into corrected/updated versions for sale that have a different URL than the version in my library (maybe it depends on how the publisher pushes the update to Kobo) and the updated version gives me a buy option instead of showing that I already own it (I'm not talking something like a 2nd edition here, but stuff where the author has fixed typos, changed covers, etc.).
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