Etsy, an online marketplace known for its handmade and vintage goods, has been facing a growing problem of generic and AI-generated products infiltrating its platform. In response, the company has revised its seller policy to tackle this issue head-on. The new policy introduces clear labels that indicate whether a seller made, designed, sourced, or handpicked an item, marking the first time Etsy has directly addressed artificial intelligence in its guidelines.
To combat the influx of AI-generated items, Etsy has implemented a set of “Creativity Standards” that require sellers to classify their products with specific labels denoting the level of human involvement. For instance, vintage goods are marked as “Handpicked,” while craft and party supplies are labeled as “Sourced.” The label “Handmade” is reserved for physical products made by the seller themselves or with tools like 3D printers or Cricut machines.
One notable addition to the labeling system is the “Designed” label, which appears to be a response to the rise of AI-generated items on the platform. Etsy has faced criticism for accepting AI art, as it poses a threat to traditional artists. With AI tools capable of mimicking artists’ styles to create artwork, Etsy is now embracing this technology. Sellers are allowed to use AI tools in combination with their original prompts to create artwork, but they must disclose this information in the listing description. The “Designed by” label alerts buyers that the item may have been created using generative AI or other digital tools.
While sellers can use AI tools to design their products, Etsy has implemented a new rule prohibiting the sale of AI prompts. Listings offering AI prompts, such as “10,000 Midjourney Prompts” or “Ultimate ChatGPT Prompts Pack,” will be flagged and removed from the platform. This move aims to maintain the integrity of handmade and original creations on Etsy’s marketplace.
During Etsy’s first-quarter earnings call, CEO Josh Silverman reassured investors and sellers of the company’s commitment to preserving the human aspect of commerce. He highlighted that Etsy had removed four times the number of listings violating its Handmade policy compared to the previous year, demonstrating their dedication to upholding their standards.
By implementing clear labels and guidelines, Etsy aims to provide transparency to buyers and protect the integrity of its platform. The inclusion of AI-generated items showcases the company’s openness to technological advancements while ensuring that traditional handmade and vintage goods remain a prominent part of the marketplace. With these measures in place, Etsy strives to strike a balance between innovation and preserving the authenticity that its customers value.
