Etsy has prohibited the sale of AI-generated functional guides, including recipes and patterns, as the company tightens its rules on artificial intelligence use. The move aims to preserve buyer trust on the platform, which has faced criticism over the rise of synthetic content.
In a blog post, Etsy stated it is banning digital downloads created with AI, such as crochet or sewing patterns and cooking instructions. The company noted that these items typically require users to put in effort to achieve a finished product. To ensure transparency, sellers must now provide a photograph of an actual item made using the instructions, rather than an AI-generated or simulated image, so buyers know what to expect.
Etsy cited a separate notice to sellers in which it explained that the changes are necessary because AI is eroding trust among both buyers and sellers. The company wrote that many active buyers can no longer distinguish items involving AI-generated content, identifying this as a top-three barrier to shopping more often on Etsy. Sellers have also expressed concern that their work appears alongside items using AI in misleading ways, making it harder for buyers to recognize the human role in creation.
The new rules also bar sellers from creating bot-generated listings without human involvement. All listings must include at least one unedited photo of the actual item being sold. However, Etsy will continue to allow AI-generated art on the platform, provided merchants play a clear role in the creation process and are transparent about it. Sellers are required to disclose when an item is created using AI and cannot misrepresent such work as handmade or entirely their own creation.
Founded in 2005, Etsy is known for its mix of craft makers and artisan goods. The company has been leaning into this reputation while battling an influx of generic, mass-produced items from resellers. It also faces increasing competition from Amazon and Walmart, as well as newer e-commerce platforms like TikTok, Temu and Shein.
Misleading AI-generated products present a new challenge for online marketplaces. Amazon recently required sellers to label photos or videos featuring AI-generated people in response to recent legislation mandating disclosure. While Etsy has cracked down on AI in listings, it has simultaneously infused the technology throughout more of its website. The company uses AI to build detailed shopper profiles and surface relevant products in search results. Additionally, Etsy has partnered with OpenAI on shopping features, including launching a ChatGPT app for product discovery.