Apparently this is true, although it seems to be limited to books for children and “young people.”
http://www.telegraph.co.uk/news/uknews/11345369/Oxford-University-Press-bans-use-of-pig-sausage-or-pork-related-words-to-avoid-offending-Muslims.html
Has anyone informed Kermit the frog about this? What will happen to Miss Piggy?
I'm worried.