Paypal doesn’t want your sexy,sexy books. They have been putting pressure on indie ebook sellers like Smashwords to eliminate several types of erotic fantasies, including paranormal romance involving shapeshifters.

Violet Blue has written a good overview of what is happening can be found here on Ziff Davis.

Smashwords has a brief rundown of what has been going on in the Feb 27th update.

What I find most troubling about this censorship of Indie authors is that mainstream publishers print books which would not be allowed under PayPal’s rules all the time. Some of them are even considered literature. They have even gone so far as to include BDSM in their list of inappropriate materials when their own eBay website sells BDSM equipment.