Etsy is introducing stricter regulations for AI-generated content in product listings to improve transparency for buyers. The platform aims to reduce misleading listings that confuse customers about the nature of the items they purchase.

Under the new requirements, every listing must feature at least one unedited photo of the physical product against a real background. While secondary images can be edited with AI tools, they must still accurately represent the final item.

The platform will now display a pop-up notification during the image upload process if it detects potential AI generation. Sellers are required to confirm whether their images were created using AI technology.

For functional guides such as recipes or patterns, Etsy now mandates that the content must be the seller's original work rather than AI-generated. Sellers must also provide proof of an actual result created from these guides.

The company has officially banned listings created by automated bots. While the sale of AI-generated art remains permitted, sellers are strictly required to disclose the use of AI in the creation process.

Sellers face financial consequences if a buyer reports that a received item is materially different from the listing description. In such cases, the seller may be held responsible for providing a refund.