Etsy said Thursday, Oct. 22, it will bar AI-generated recipes and craft patterns and tighten seller listing rules, responding to concerns that misleading AI content makes it harder for shoppers to judge products.
The restrictions cover functional guides that buyers use to make or complete something. These products are often sold as digital downloads, including crochet and sewing patterns; recipes are also included. Etsy says sellers must show an item made by following the instructions, rather than a generated or simulated example, so customers can see the result they are being asked to produce.
Etsy also prohibits listings created by bots without human involvement. Sellers must include at least one unaltered photograph of the item offered for sale, the company said.
Etsy said uncertainty about AI use ranks among the main reasons active buyers do not shop more often. The company also said sellers have raised concerns that misleading AI listings can make it harder for buyers to recognize the sellers’ own contribution to their work.
AI-generated artwork remains allowed if sellers “play a clear role in what they create” and are transparent about the process, Etsy said. Sellers must disclose AI use and cannot describe AI-generated work as handmade or entirely their own.
Etsy, founded in 2005, has built its identity around craft makers and artisan goods. CNBC reported that the company has leaned on that reputation as it contends with generic, mass-produced goods from resellers, competition from Amazon and Walmart, and newer platforms such as TikTok, Temu and Shein. CNBC also reported that Etsy uses AI to build shopper profiles and surface products in search results, and has partnered with OpenAI on shopping features, including a ChatGPT app for product discovery.
