Etsy has new AI listing rules: most listings now need at least one unedited photo of the actual item on a real background. Etsy's Seller Handbook announcement, written by VP of Customer Operations James Ossman, also bans AI-generated functional guides and fully bot-generated listings. The Verge reported the change on Oct. 22.

Why Etsy is doing this

Etsy says many active buyers cannot tell which items involve AI content, and that this is now one of the top three barriers to shopping more on the site. It adds that sellers worry about appearing next to misleading AI items.

What sellers must change

  • One real photo. Every listing needs at least one unedited photo of the actual item on a real background. Exceptions apply to print-on-demand, digital, customized and made-to-order items.
  • Accurate photos. Every photo must show the item accurately. Other photos may use editing tools, including AI, for lighting, color, crop and background.
  • No AI-made instructions. AI-generated functional guides such as patterns, recipes and instructions are banned. Those listings must show a real result made from the instructions.
  • No fully bot-made listings. These are banned and removed, and the shop may be removed too.
  • Update old listings. Existing listings that break the rules must be updated.
  • AI art is still allowed. The seller must play a clear creative role and disclose the AI use.

If a listing breaks the image rules and a buyer opens a "not as described" case, the seller may have to refund.

What buyers and sellers will see

  • Flags in the listing form. Etsy says the form will flag images it detects as AI-generated and offer tips. It plans to expand this to existing images "over time."
  • Fraud detection and appeals. Etsy describes detection tools aimed at fraudulent AI inventory. Sellers can appeal through the Policy violations page in Shop Manager.
  • A new report reason. Report this item gains a "misleading AI imagery" option. At first, these reports do not trigger immediate enforcement.
  • Buyer-facing AI context. Etsy says it will explore this "in the coming months."

Etsy also points to California SB 1050, which covers AI synthetic-performer disclosure in ads and takes effect Jan. 1, 2027.

What Etsy has not said

Etsy's announcement gives no compliance deadline for existing listings. It does not describe how its detection works or how accurate it is, and it gives no numbers on how many listings involve AI. It sets no date for the buyer-facing AI context it says it will explore, and it names no effective date for the rules.

For another effort to mark AI content, see which AI chatbots watermark their text. For another marketplace crackdown, see Microsoft's move against a scam marketplace.