Myth: No-one knows what you're reading on a Kindle.
Truth: Amazon can pull the log file from your Kindle remotely and see what books are on your Kindle, and which ones you've been reading, whether you bought the books from Amazon or not.
Source: Amazon Kindle: License Agreement and Terms of Use
http://www.amazon.com/gp/help/custom...odeId=20014453
Specifically:
Information Received.
The Device Software will provide Amazon with data about your Device and its interaction with the Service (such as available memory, up-time, log files and signal strength)
and information related to the content on your Device and your use of it (such as automatic bookmarking of the last page read and content deletions from the Device). Annotations, bookmarks, notes, highlights, or similar markings you make in your Device are backed up through the Service. Information we receive is subject to the Amazon.com Privacy Notice.
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