Etsy restricts AI-generated patterns and recipes under new seller rules

Etsy announced on October 22 that sellers on its online marketplace may no longer offer AI-generated patterns, recipes and other instructional guides, NBC News reported. The change targets digital products that buyers use to make something themselves, where misleading instructions or images can leave them with a result different from the one advertised.

The restriction covers what Etsy calls functional guides, including crochet and sewing patterns and cooking recipes. Sellers must show an actual item made using the instructions, rather than an AI-generated or simulated finished product, CNBC reported. The rule affects merchants selling such downloads and buyers who rely on the pictured result when deciding whether to purchase them.

What Etsy’s AI rules require of sellers

AI-generated art can still be sold if merchants play a clear role in making it and are transparent about the process, Etsy said in a notice to sellers cited by NBC News and CNBC. Sellers must disclose when an item is created using AI and cannot present AI-generated work as handmade or entirely their own creation, according to CNBC. The new rules therefore distinguish permitted AI-assisted artwork from AI-made instructions that buyers must follow to produce a finished item.

Etsy told sellers that many active buyers cannot tell which items involve AI-generated content and described that confusion as one of the three biggest barriers to shopping more often on the site, CNBC reported. The company said sellers had also raised concerns about their work appearing alongside items that use AI in misleading ways. Those are Etsy’s descriptions of feedback from its marketplace.

How Etsy plans to police misleading listings

James Ossman, Etsy’s vice president of customer operations, said the company would make it easier for users to report listings with misleading AI imagery, NBC News reported. Etsy also plans to expand its use of technology to identify misleading images and fraudulent listings, with a goal of increasing removals in the coming months. The company has not said how many listings the expanded effort will remove.

The rules arrive as Etsy faces a wider challenge from generic, mass-produced products sold by resellers, CNBC reported. The marketplace is known for craft makers and artisan goods, making accurate descriptions of a seller’s contribution and the finished product central to buyers’ expectations. Ossman said Etsy was still working through the questions AI raises for the marketplace and called the announced measures initial steps, according to NBC News.