Etsy bans AI-made patterns and recipes, requires real photos of items

Etsy has tightened its rules on artificial intelligence (AI) for sellers. In updated guidelines published Oct. 22, the marketplace banned AI-generated patterns, recipes and instructions, and said every listing must include at least one unedited photo of the actual item. Etsy says the goal is to protect buyer trust, which it says is being eroded as AI-generated listings spread across the site.

What changed

Etsy's seller handbook now bans AI-generated functional guides. That covers patterns, recipes and instructions. Listings for these items must also show a real result made by following the seller's own instructions. An AI-generated picture of what the finished product might look like is not enough.

Etsy vice president of customer operations James Ossman put it this way: "AI should support your creativity and craftsmanship, not replace them. Buyers should always be able to understand the role you play in every item you sell on Etsy."

Photos and AI art

Every listing now needs at least one unedited photo of the real item against a real background. Other images can still use AI-assisted editing to adjust lighting, color, cropping or backgrounds. But all photos must accurately represent what the buyer will receive.

AI-generated art is not banned outright. It is allowed when the seller plays a clear creative role, such as a fantasy illustration based on the seller's own prompt and creative direction. Sellers must still say when an item was made with AI. They cannot pass AI-generated work off as handmade.

How it will be enforced

• Listings made by bots with no human involved are banned and will be removed.
• Etsy will alert sellers if it detects AI-generated images while they create a listing.
• Detection will expand to existing listings over time.
• Sellers whose listings are removed can appeal on the Policy violations page in Shop Manager.

Etsy is also adding a way for buyers to flag listings they think are AI-generated. At first, those reports will help Etsy understand how buyers view AI misuse. They will not trigger immediate action. Etsy says removals will expand in the coming months as its detection tools improve.

Etsy still uses AI itself

The company is not against AI in general. CEO Kruti Goyal has said the biggest opportunity is using AI on Etsy to connect the right buyers with the right sellers. Etsy has partnered with OpenAI, Google and Microsoft on agentic commerce, where AI tools help shop on a buyer's behalf. Goyal said in August that these experiences make up less than 1% of Etsy's traffic.