Etsy announced new restrictions on artificial intelligence-generated content appearing in marketplace listings, citing feedback from both buyers and sellers regarding the prevalence of misleading product images and descriptions.
The new policies mandate that every listing include at least one unedited photograph showing the actual physical item against a genuine background. Additional images may be edited using software or AI tools, provided the final result accurately depicts the product a buyer will receive. The platform will alert sellers during the image upload process if it detects potentially AI-generated content, prompting them to disclose whether images were created with artificial intelligence technology.
For listings offering functional guides such as patterns, recipes, or instructional materials, Etsy requires that all information be original work created by the seller rather than generated by AI systems. Sellers must provide evidence of an actual completed result produced from their guides. The company also stated that listings created entirely through automated bot systems will no longer be permitted on the marketplace.
Artificial intelligence-generated artwork remains permissible for sale, though sellers are required to clearly label and disclose that such items were produced using AI technology. Etsy indicated that buyers who receive items materially different from their listing descriptions may be entitled to refunds, making sellers potentially liable for discrepancies between advertised and delivered products.
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