Etsy Tightens Rules on AI-Generated Content in Product Listings

Etsy, the online marketplace known for handmade and unique goods, has announced tighter rules on the use of artificial intelligence (AI) in product listings. The company says the goal is to reduce the amount of low-quality, AI-generated content on the platform. According to Etsy, many active buyers cannot tell which items involve AI-generated content, while sellers worry about their work being shown next to items that use AI in misleading ways.

Photo requirements

Under the new policy, every listing must include at least one unedited photo of the actual item against a real background. All photos must accurately represent what the buyer will receive. Any additional photos may be edited with software or AI-powered tools, provided the final result remains an accurate representation of the physical product. Etsy has published several examples of prohibited misleading images, including one of a cat-shaped stuffed toy.

If Etsy detects that an image uploaded for a listing may be AI-generated, it will display a pop-up in which the seller can indicate whether AI was used. If a buyer reports that what they received is materially different from the listing, the seller may be responsible for issuing a refund.

Guides, recipes and bot-made listings

Sellers who offer so-called functional guides, such as patterns, recipes or instructions, must ensure the information is their own work and not generated by AI. These sellers will also have to show an actual result made from the guide. In addition, listings created by bots are no longer permitted.

Selling AI-generated art remains allowed on Etsy, but sellers must disclose that the work was made with AI.