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Etsy announced new restrictions Thursday on AI-generated content on its platform, saying it threatens the integrity of its sellers’ work and leaves buyers exposed to fraud.

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AI-generated art can still be sold on the platform as long as merchants “Play a clear role in what they create and are transparent about the process,” Etsy said in a note to sellers.

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“Our marketplace only works when buyers and sellers trust each other,” Etsy Vice President of Customer Operations James Ossman wrote in a blog post.

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“Sellers need clear guidance and confidence that their creativity and craftsmanship will be represented fairly; buyers need to understand what they’re buying and the human involvement behind it. We know we have work to do to uphold this standard on Etsy.”

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Etsy hosts more than 5 million entrepreneurs, most of whom are women who run one-person businesses out of their homes, according to an annual company report.

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That distinguishes it from other major e-commerce platforms like Amazon and eBay, though it commands a fraction of those platforms’ revenues. As of 2024, Etsy hosted $10.9 billion-worth of goods’ sales, compared with about $75 billion for eBay and more than $700 billion for Amazon.

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Some buyers responded positively…

Original source: https://www.nbcnews.com/business

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