Etsy stated on Thursday that merchants will no longer be allowed to sell recipes and patterns generated by AI on their online markets, as part of a broader initiative to tighten the rules regarding the use of artificial intelligence on the platform.
In a blog post, Etsy mentioned that the sale of “functional guides” created using AI is being prohibited, including patterns, cooking recipes, and instructions. Such products are typically sold in digital download form, such as crochet or sewing patterns. The company stated that users would then “put in the effort to complete the final product.”
Etsy also requires sellers to display a physical item made according to these instructions, rather than the results generated or simulated by AI, "so that buyers will know what they will receive."
In another notice sent to sellers, Etsy stated that the company made these adjustments because AI was threatening to erode the trust of buyers and sellers on the platform.
The company stated, "Today, many active buyers indicate that they are unable to distinguish which products involve AI generated content. This has become one of the top three obstacles preventing them from shopping on Etsy more frequently. And you, our seller community, have also told us that you are concerned about your works appearing alongside those products that use AI in a misleading manner, and it is becoming increasingly difficult for buyers to recognize your role in creating these products."
As part of this adjustment, Etsy indicates that sellers will be prohibited from creating product information generated by robots without any human involvement. Sellers will also be required to provide at least one unedited photo of the actual item.
Etsy told sellers that the company will continue to allow AI on the platform to generate art works, as long as merchants "play a clear role in the creation and remain transparent about this process."
The company added, "Sellers must still disclose whether the product was created using AI, and they cannot disguise works generated with AI as being handmade or entirely their own creations."
Etsy was established in 2005 and is known for its blend of handmade crafts and artisanal goods. In recent years, as the company has had to compete with a large number of mass-produced items brought by resellers, as well as with emerging e-commerce companies such as Amazon, Walmart, TikTok, Temu, and Shein, Etsy has been placing even more emphasis on this brand identity.
Misleading AI generated products or images, posing new challenges to Etsy and other online markets. In recent years, it has been difficult to curb the proliferation of crochet patterns and other AI "garbage content" produced by AI. Amazon has also recently required sellers to label photos or videos containing AI generated characters in response to recent legislative requirements for disclosing such information.
Although Etsy has been constantly cracking down on the use of AI in product information, the company is also integrating this technology more widely into its website. Etsy has already used AI to create more detailed profiles for shoppers and display more relevant products in search results.
Etsy has also collaborated with OpenAI to launch a shopping feature, which includes the release of a ChatGPT app for product discovery.
