If you have another Kindle, you likely did not disable saving your WiFi information to Amazon (it's an option when you first connect to a WiFi SSID). You can delete saved information from the WiFi menu under Settings using the Delete Wi-Fi passwords option.
It's not illegal since you consented to it even if you didn't realize it at the time. You may want to check
Saving Your Network Passwords to Amazon FAQs.
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"I have read and agree to the Terms" is the biggest lie on the web.
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