Bonnie & Clyde
So, I can't email Kobo; the only means I have according to the site is to phone them and run up MY phone bill. I contacted them via Facebook & Twitter - no reply was their answer, and I don't expect a response with information I found today.
I found out they work, hand in glove with Smashwords. Years ago, I read masses of reports online from all over the globe from writers who used Smashwords and didn't get paid. The authors asked their books to be removed from stock, only to find it sold without their consent and they weren't getting any money from sales.
It is clear that Smashwords is playing the part of Bonnie, the more dominant role and organising what happens.
Kobo is obviously subservient as they are the smaller and less known section of the pair.
This does not excuse Kobo for their actions, there are two parties in the arrangement and while one is the dominant partner, both are responsible for their actions.