Etsy is grappling with the common “junk” and AI-generated products that are coming onto its platform. The service updated its seller policy on Tuesday, introducing new labels that clarify whether a seller created, designed, sourced, or hand-picked an item. This is the first time a seller policy has directly addressed AI, and it adds clear guidance on what the site does and does not allow.
Etsy explained that under a new set of “creativity standards,” sellers will be required to label each of the 100 million items on the platform with a clear label that specifies the level of “human involvement” that went into the product. The new label will be located under the “Item Details” section of the description.
For example, if a store owner sells vintage items, those items should be labeled as “selected.” Craft and party supplies should be labeled as “sourced.” On the other hand, a “handmade” label refers to physical items that the seller has made themselves or items made with tools like a 3D printer or Cricut machine.
The new “Designed” label is likely a response to the rise of AI-generated items that once dominated the craft market. Etsy has faced significant backlash in recent years for embracing AI art because of the impact it has on traditional artists. AI tools can generate artwork that mimics an artist’s style. Despite ethical concerns, the service is embracing the technology.
As the company explains in its Seller Handbook, sellers can “use original prompts with AI tools to create the artwork they sell on Etsy.” Sellers are required to label their items as “Designed by,” which lets buyers know that the item they are purchasing may have been designed with generative AI, an outside production partner, or other digital tools.
“Acceptable examples could include fantasy scenes created by AI generators or custom portraits of a buyer’s pets generated using AI tools, based on the seller’s original prompt or input,” the company added. “Sellers must disclose in their listing description if an item was generated using AI.”
Sellers can design items using what Etsy calls “seller-driven AI creations,” an AI tool, but Etsy has added a new rule that prohibits AI prompts from being sold. You’ve probably seen these types of listings flooding the platform, like “10,000 Midjourney Prompts,” “Ultimate ChatGPT Prompts Pack,” and more. A spokesperson told TechCrunch that these listings will be flagged and removed from Etsy starting today.
During the company’s first-quarter earnings call, CEO Josh Silverman reassured investors and sellers that Etsy is committed to “keeping commerce human,” he said. Etsy has removed four times as many listings for violating Handmade policies year over year, according to Silverman.
