Etsy Implements AI-Generated Item Guidelines in Seller Policy Update

  • Etsy updates seller policy to combat influx of generic and AI-generated products.
  • Introduces “Creativity Standards” requiring clear labeling of items based on human involvement.
  • Labels include “Handpicked,” “Sourced,” “Handmade,” and “Designed” to differentiate product origins.
  • Specifically addresses AI-generated artwork with new guidelines for transparency.
  • Prohibits sale of AI prompts to maintain marketplace integrity.
  • CEO Josh Silverman reaffirms commitment to human-centric commerce during earnings call.

Main AI News:

Etsy, facing an influx of generic and AI-generated products, unveiled a revised seller policy on Tuesday. This update introduces new labeling requirements aimed at clarifying the origins of items listed on the platform. For the first time, Etsy is directly addressing artificial intelligence within its policies, outlining clear guidelines on acceptable practices.

Dubbed “Creativity Standards,” the new guidelines mandate sellers to categorize over 100 million items with labels indicating the extent of human involvement in their creation. These labels will prominently feature in the “Item Details” section of product descriptions. For instance, vintage items will be marked as “Handpicked,” while craft supplies will carry the label “Sourced.” Products physically made by sellers or through tools like 3D printers will bear the “Handmade” label.

Notably, the introduction of the “Designed” label reflects Etsy’s response to the growing presence of AI-generated artwork and products. This label is crucial amid concerns over AI’s ability to replicate traditional artistic styles, prompting Etsy to delineate between items designed with AI tools and those made entirely by human hands.

According to Etsy’s Seller Handbook, sellers are encouraged to use AI tools alongside their creative inputs to generate artwork sold on the platform. However, such items must be clearly labeled as “Designed by,” signaling to buyers that AI or similar digital tools were involved in their creation. This move, while controversial, aligns with Etsy’s stance on innovation and technology in creative processes.

Despite allowing sellers to utilize AI for creative purposes, Etsy has prohibited the sale of AI prompts through a new policy addition. Listings offering AI-generated prompts, previously abundant on the platform, will now face removal to uphold the integrity of Etsy’s marketplace.

During the recent earnings call, Etsy CEO Josh Silverman emphasized the company’s commitment to maintaining a human-centric approach to commerce. He highlighted a significant increase in the removal of listings that violated Etsy’s Handmade policy, underscoring Etsy’s proactive stance in ensuring authenticity and quality across its platform.


Etsy’s strategic update to include AI guidelines in its seller policy marks a significant step towards maintaining authenticity and transparency in its marketplace. By introducing clear labels and prohibiting the sale of AI prompts, Etsy aims to balance technological innovation with the preservation of handmade craftsmanship. This move not only addresses current challenges but also positions Etsy as a leader in ethical commerce practices, fostering trust among both sellers and buyers in the evolving digital landscape.


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