If Amazon is alerted as to the potential “obscenity” of a self-published sex fantasy novel it bears legal liability (up to 10 years in prison per work in some states, fines in others) if it does not remove that work. Or at least it would be very difficult to argue in court that it was not aware of the content of the work.

Juries have virtually unbridled discretion to conclude a work is offensive according to local standards, the only saving grace is if the work has serious literary value.

Relying on self-publishers (rather than big publishing houses) to only publish works with serious literary value is a disaster waiting to happen.

http://www.engadget.com/2010/12/14/nook-color-getting-android-2-2-and-market-in-january-current-ha/