Etsy Tightens AI Listing Rules, Requires Unedited Product Photos

Etsy is cracking down on AI-generated product listings, requiring most listings to include at least one unedited photo of the product against a real background, the e-commerce marketplace said in a blog post Thursday outlining updated policies. Functional guides such as patterns, recipes and instructions can no longer be AI-generated and must showcase real results made by using the guide. Bot-generated listings are prohibited and will be removed, and buyers who open cases because a product materially differs from its listing may receive refunds from sellers if the listing failed Etsy's updated image requirements. Etsy also added a feature to its listing form that flags images it detects may use AI, and said it is investing more in AI detection and listing removal tools. VP of Customer Operations James Ossman said the changes are "our starting point, not the finish line." The move comes as Etsy expands its own AI use. CFO Lanny Baker told analysts in August the company is spending more on AI and compute, while CEO Kruti Patel Goyal said AI's biggest opportunity is improving Etsy's discovery, matching and personalization.