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I find it incredible that anyone would use a Kindle (or similar device) when they know beforehand that data-gathering is the name of the game. I find it even more incredible that they are actually surprised by the extent of the data collected.

I've a different worldview wherein I automatically assume that any online, phone or interactive activity that I engage in will be monitored and recorded automatically and I take steps to either not engage in them or I actively take steps to nuke the data collection.

could we unclickbait the title?

I suggest: "Every highlight tracked on Amazons Kindle"

Kindle highlights are a cloud service. You can even browse them on https://read.amazon.com/kp/notebook

of course they are stored....

From what I read there might even be a toggle option for "annotation backups" in the devices settings.