Yep..... They even have a sticky posted about it in their general Forum.   

I told before of a famous law case in Brazil, a photo of people at the beach used in a bank advertisement, and there was this lady whose back (better say, whose buttocks!) appeared very clearly in the photo.  Not only she won the case, but her famous side earned her a lot more money.

Regards,
Adelaide

Steve-Oh responded to a similar question in another thread.  BTW, I think they are being more strict with property as well.

Hi JC-SL (and others),

Yes. Just because a person's face is not visible does not mean they are not identifiable. As microstock matures and becomes more prevalent in mainstream usage, we are going to be a bit more strict when it comes to model releases.

Even though faces weren't visible in many of your shots, runners still had numbers on them, and there were other contextual visual clues that could easily make a person identifiable.

Thanks!
-Steve

I once sent one with two silhouetted people and they say they were identifiable. 

Regards,
Adelaide

Yup I had that on SX too... same story - accepted everywhere else (and is quite a good seller). I understand why they want to be on a safe side - like "hmm I don't know if this identifiable or not, who knows, but to avoid even remote possibility for the lawsuit it's better to reject it... we have lots of other stuff to sell". With current practices especially in US where all this ridiculous lawsuits are happening all the time I'd probably do the same if I was the owner of the agency.
Not that I don't think it's a ridiculous nonsense. Next they will require releases for the clothes that models are wearing from the manufacturer. I mean, the pattern on the sweater or the hat can be identifiable right? Hmm, shouldn't have said that, don't want to give them ideas...
About street shots being "easy way" - can't agree. For the shot that I am talking about, had to spend an hour on the corner of the street waiting for the right light and right people to show up (let's post LO again cause I like Bryan:)):
http://www.luckyoliver.com/photo/4940814/business_people
This image has unmistakable "street feeling', something you can't really recreate with models. Not this kind of dynamics.

Now, can you even tell which city this was taken in? Now or 10 years ago? Can you really say for sure if it was you - yes this is me without a doubt?
I don't think so... But like I said before they are just being too cautious. Why not accept them as editorials tho?