THE CRUNCH
Etsy is introducing stricter rules on how AI can feature in listings, aiming to cut down on AI slop on the marketplace. The company says many active buyers report they cannot tell which items involve AI-generated content, and that sellers have raised concerns about their work appearing alongside misleadingly AI-assisted items.
The headline change: every listing must include at least one unedited photo of the actual item against a real background, and all photos must accurately represent what a buyer will receive. Later images can still be edited with software or AI-powered tools, provided the final result stays true to the physical product. If Etsy detects a possibly AI-generated image during upload, a pop-up will ask the seller to say whether it was made with AI.
Other restrictions target low-effort automation. Listings made by bots are no longer allowed, and sellers offering functional guides such as patterns, recipes or instructions must ensure the content is their own work rather than AI-generated, and show an actual result made from the guide. If a buyer reports that an item is materially different from its listing, the seller may be on the hook for a refund.
One nuance worth noting: selling AI-generated art is not banned. Sellers simply have to disclose that AI was involved.