I've heard of this kind of thing but was never really sure what it was.

Let me get this straight: you own (not rent) your own home. You put up curtains/blinds. The neighbours don't like the look of them and tell you to take them down?

It sounds very... erm, surreal.

What am I missing?

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What happens if you (shock, horror) don't take them down? Do they force their way in and hang curtains?

I'm just visualising a black and white circa-1850 angry mob scene from a Frankenstein movie; burning brands, pitchforks, hammers and a set of white blinds...

Or is it more psychological? Whispers and glances? More Poe than Shelley?
</tongue-in-cheek>