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Etsy Updates Seller Policy to Include AI-Generated Item Guidelines

Etsy adds AI-generated item guidelines to new seller policy

Etsy Updates Seller Policy to Clamp Down on AI-Generated Items

In a bid to curtail the proliferation of generic "junk" products and artificial intelligence (AI) generated items on its platform, Etsy has revised its seller policy and introduced new labels to clarify the level of human involvement in product creation.

Etsy’s New Creativity Standards

As part of its efforts to maintain transparency and accountability, the company has implemented new labels that require sellers to categorize their items according to the level of "human involvement" involved in their creation. These labels are located in the "Item Details" section of the description.

Examples of New Labels

The new labels include "Hand-Picked" for vintage items, "Sourced" for craft and party supplies, and "Handmade" for physical products made by the seller themselves or with tools like 3D printers or Cricut machines.

"Designed" Label

Etsy has introduced the "Designed" label to address the growing presence of AI-generated items. This label applies to sellers who use AI tools to create original designs or works of art.

AI-Generated Items: Seller Responsibilities

According to Etsy’s seller manual, sellers can use AI tools in combination with their original instructions to create the works of art they sell on the platform. However, they must label their items as "Designed by" to signal to buyers that the item was designed using AI or other digital tools.

Allowed and Disallowed AI Creations

Etsy allows sellers to design items using AI tools, which it refers to as "seller-driven AI creations." However, the company has banned the sale of AI prompts, which are becoming increasingly popular on the platform.

Etsy’s Commitment to Human Commerce

Etsy CEO Josh Silverman emphasized the company’s commitment to keeping commerce human during its first-quarter earnings conference call. According to Silverman, the company removed four times as many listings that violated its Handmade policy compared to the previous year.

As a result of these efforts, Etsy’s new Creativity Standards aim to ensure that buyers have a clearer understanding of the products they purchase on the platform and to promote the work of human sellers and makers.

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