For the complete "press release" from Mark Coker Founder of Smashwords read here.
To quote some of my favorite bits:
*THINGS TO AVOID:* Avoid using words such as ‘bestiality,’ ‘rape,’ ‘incest,’ ‘underage,’ or ‘barely legal’ in book titles, book descriptions or keyword tags, otherwise Smashwords may conclude you’re violating the Terms of Service, or trying to push the limits. If you’re writing non-erotic works, and any of these words are necessary, then you’re okay.
(Particularly the bit about if you're writing non-erotic works then your okay.)
The moralists forget that we humans are all sexual creatures, and the biggest sex organ is the brain. If it were not the case, none of us would be here. Erotica authors are facing discrimination, plain and simple. Topics that are perfectly acceptable in mainstream fiction are verboten in erotica. That’s not fair. Our decisions today are imperfect. Please, act responsibly, don’t try to game the system or publish content that pushes the limits of legality. Help us continue to help indie authors around the world to continue to publish and distribute with freedom.
At least he sees that it is unfair... Its infuriating that we really have zero options. Whats even more infuriating is that there is really no course of action - because we are a "Gray area" within society not many people/companies/places will stand up for our voices and our rights to speak out. Paypal is completely a bully.
The Binding: An Erotic FANTASY is being removed on Monday because my main characters make love when he is shifted in half wolf-half human form. Its your last chance to buy it from Smashwords - I will keep it on Amazon and Barnes and Noble as long as they let me.