tl;dr Books, most likely generated by an LLM, were being sold on Amazon under Jane Friedman’s name. The same books were added to her Goodreads profile. Amazon initially refused to remove the books. If it’s happening to her, it’s definitely happening to other authors.
There isn’t a need for that at the moment. There are PLENTY of small publishers you can send a manuscript to. Small publishers will, of course, sell authors’ books on Amazon, but it’s absolutely not the same thing as going it on your own as an author dealing directly with Amazon. First of all, if you submit to and are accepted by a small publisher, libraries can purchase your book and there are none of the exclusive rights crap Amazon imposes on the individual writer looking for a venue. Most writers seek out a small publishing house before resorting to the “go it alone” approach. There are many writers who also avoid the Amazon bullshit by setting up their own publishing company just to publish their own works, which is perfectly simple to do and doesn’t cost much at all, in comparison to all the costs associated with marketing, cover art, bla bla bla. Amazon is often a last resort or a result of “the final straw” of receiving rejections from publishers and when writers don’t know how to set up their own mini publisher to self-publish first. Anyway, you can by-pass a lot of the Amazon crap by setting yourself up as a publisher that dedicates itself to publishing your writing. You can even offer paperbacks and hardcovers, using a printing service to take care of that for you. Then, through your own publishing company you set up, you offer your work to Amazon. It’s a different set of conditions.