Etsy announced new rules on Thursday (22) that require at least one unedited photograph of the actual product, against a real background, in most listings published on its marketplace. The measure seeks to prevent artificial images from creating expectations different from what the buyer will receive, but it does not constitute a general ban on the use of artificial intelligence.
Under the new guidelines, the mandatory photograph cannot have digital alterations, including modifications to lighting, colors or setting. The other images in the listing may continue to receive adjustments, including by AI tools, as long as they faithfully represent the product being sold.
This means that a seller may photograph a handmade item without editing and, in the supplementary images, use digital resources to present it in different environments. What will not be allowed is hiding defects, simulating nonexistent characteristics or making the product appear superior to the item delivered.
James Ossman, vice president of Customer Operations at Etsy, explained that the platform intends to distinguish legitimate uses of digital tools from those that harm buyer trust.
“A blanket ban on AI tools would treat these different uses as if they were the same”, the executive said in the official statement.
Which images and products with AI are still allowed?
The requirements vary depending on the type of merchandise. Etsy's documentation establishes specific conditions for physical, digital and personalized products.
In the case of print-on-demand, sellers who apply their original designs to T-shirts, mugs and other standardized products may use demonstration images, as long as they have authorization to use the photographs.
For digital products, such as printable files and graphic templates, the listing must present a preview of the content actually sold. When the product has no visual component, representative images, including AI-generated ones, may be used without misleading the buyer.
Meanwhile, sellers of customized products made to order must show photographs of actual items previously produced, allowing the consumer to evaluate the quality of the work.
The platform will also continue to allow artistic works created with the aid of AI when there is individual creative participation by the seller. In these cases, the use of the technology must be disclosed in the description, without presenting the result as an entirely manual creation.
The restrictions are stricter for functional content. Recipes, craft patterns and practical instructions generated by AI may not be sold as products of this type. Sellers must produce their own instructions and present real results obtained with them, instead of relying exclusively on simulated images.
Etsy has also prohibited listings and products produced entirely by automations without individualized human creative contribution.
The company said it will expand its mechanisms for identifying misleading images and removing noncompliant listings in the coming months. Initially, reports related to the possible misuse of AI will serve to improve enforcement systems, without automatically triggering punitive measures.
Sellers who fail to comply with the requirements may have their listings removed. If a buyer receives an item materially different from the one presented, the seller may also be held liable for the refund.



