Etsy Bans AI-Generated Recipes and Craft Patterns

US-based e-commerce platform Etsy has updated its policies on the use of artificial intelligence, banning AI-generated recipes, craft patterns, and instructional content. The regulations announced by the company also require authentic photographs in most product listings while imposing restrictions on listings automatically created without human involvement.

Etsy Introduces New Artificial Intelligence Rules

Etsy's updated policies cover functional instructions that enable consumers to make, prepare, or use a particular product. Accordingly, patterns for knitting, sewing, embroidery, and other crafts, as well as recipes, woodworking projects, assembly guides, and instructional content, may no longer be generated by artificial intelligence.

The company requires sellers to prepare the instructions they offer for such products themselves. In addition, an actual example must be shown so that buyers can evaluate the results that can be achieved by following the instructions.

According to Etsy's policy statement, AI-generated functional instructions may contain incorrect or impractical information. Buyers may only discover these errors after spending time and materials. The regulation directly affects how businesses selling digital recipes and patterns prepare the content they offer.

Unedited Photo Requirement Introduced for Product Listings

Under the new rules, most product listings on Etsy must include at least one photograph of the product being sold, taken in a real setting and not digitally altered. The regulation aims to prevent products from being presented with features they do not actually possess. Sellers will not be allowed to conceal imperfections in photographs or use AI tools to misrepresent a product's materials, texture, or appearance.

However, the use of AI-powered editing tools will continue to be permitted for images other than the mandatory authentic photograph. Adjustments to lighting, color, cropping, and backgrounds will be allowed, provided they do not alter the product's actual characteristics. Different photography requirements will apply to categories such as digital products, personalized orders, and made-to-order production. Sellers may be held responsible for refunds if products purchased through listings that fail to meet the image requirements differ significantly from how they were advertised.

Etsy to Remove Listings Created Without Human Involvement

Etsy also announced that product listings created through bots without any individual human involvement will not be permitted on the platform. Such listings may be removed, and sellers' shops may be closed in cases of serious or repeated violations. However, the regulation does not mean that all AI-assisted artwork is banned. Etsy will continue to allow the sale of AI-generated works created through sellers' original prompts and creative contributions.

The use of artificial intelligence must be disclosed for these products. In addition, works may not be presented as entirely handmade, and the sale of AI prompt bundles independent of finished artworks is not permitted. Etsy's policy distinguishes between automated content generation and the use of AI tools by humans making creative decisions.

Etsy Continues Technology Investments While Strengthening AI Oversight

Etsy announced that it has developed new monitoring tools to strengthen the detection of misleading images and listings promoting products that do not actually exist. The platform will provide sellers with notifications when AI use is detected in images during the product upload process. A new reporting option will also be introduced to allow users to flag misleading images. The company states that these reports will not initially lead directly to enforcement action.

Attention has also been drawn to the fact that Etsy continues to invest in artificial intelligence within its own operations despite restrictions on seller content. According to the report, the company's Chief Financial Officer, Lanny Baker, highlighted increased investments in artificial intelligence and computing during the financial results conference call in August.

Etsy CEO Kruti Patel Goyal, meanwhile, considers the use of artificial intelligence in product discovery, matching, and personalization processes an important opportunity for the company.

In Etsy's corporate announcement dated October 22, the company stated that approximately 6 million creative entrepreneurs sell on the platform and that nearly 90% of them operate their shops independently. The company's new policies focus on making the creative contributions of sellers who use artificial intelligence more visible and maintaining buyers' trust in product listings.