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Etsy Bans some AI-Generated Products in New Guidelines
The marketplace will still allow AI-generated art if sellers disclose its use and show one unedited photo of the actual item.
Etsy banned the sale of AI-generated "functional guides" on Thursday, including patterns and recipes, as part of a crackdown on platform "slop."
To protect platform trust, Etsy said many active buyers "can't tell which items involve AI-generated content," while sellers worry about their work appearing alongside misleading AI items. The company aims to restore confidence among both groups.
Under the new policies, listings must include "at least one unedited photo of the actual item against a real background," and bot-generated listings without human involvement are now banned. Users must "put in effort to achieve a finished product."
Sellers must still disclose when an item is AI-created and cannot misrepresent work as handmade, the company added. If a buyer reports an item is "materially different" from the listing, the seller may be held responsible for a refund.
While banning AI in products, Etsy continues using AI-powered tools to build detailed shopper profiles and surface search results, navigating competition from Amazon, Walmart, TikTok, Temu, and Shein. The dual approach reflects the company's effort to balance platform trust with operational efficiency.