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Kobo follows Canadian privacy laws unless the local laws are stricter in which case they will be followed. As far as I can tell, the only information Kobo collects and sends home on sideloaded books are page turns, completion and reading time. They do not collect information on the title/author/other metadata of a book you are reading.
So they will know that you have read 340 page flips and have been reading for 132 minutes in your current book. They will not know that you have been reading MacGyver's Guide to IEDs by Ima Pseudonym.
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