Etsy has updated its Seller Policy to require disclosure when product listing images are fully or substantially generated by AI tools such as Midjourney, DALL-E, Adobe Firefly, or similar platforms. The policy took effect March 1, 2026 and applies to all active and future listings across Etsy's marketplace.
What the Policy Requires
Sellers must disclose AI-generated images in two places:
- Listing description: Include a clear statement such as "Product images created with AI assistance" or "Listing photos are AI-generated representations" in the item description.
- About section (if applicable): If AI-generated imagery is used consistently across your shop, Etsy recommends noting this in your shop's About section.
The policy covers images where AI was the primary generation tool. It does not apply to:
- Photos of real products that were AI-enhanced (background removal, colour correction, lighting adjustment)
- Mockup templates where a real product image is placed into a lifestyle scene by the seller
- AI-generated images used for pattern or design reference, not as the product photo itself
Why Etsy Is Doing This
Etsy's marketplace is built on the premise of handmade, vintage, and unique items. The company has faced growing pressure from both buyers and longstanding sellers regarding AI-generated imagery making it difficult to distinguish realistic product depictions from actual craftsmanship. This policy is part of a broader effort to maintain buyer trust, particularly in categories like jewellery, home decor, and art prints where AI imagery closely resembles real products.
Enforcement
Etsy will enforce through a combination of automated detection (using AI-image classifiers integrated into the listing review pipeline) and buyer reports. Consequences for non-disclosure:
- First instance: Listing removed with a notice to update and resubmit with disclosure
- Repeated instances: Account warning and potential temporary suspension of listing privileges
- Deliberate deception (e.g., AI image presented as a photo of a handmade item that doesn't exist): Permanent suspension under the existing Misrepresentation policy
What Sellers Should Do
- Audit your active listings — identify any listings where the primary images were AI-generated and add disclosure language to the descriptions.
- Update listing templates — if you use AI imagery by default, add disclosure text to your standard listing template.
- Document your process — keep records of which images are AI-generated versus real photography, in case of a dispute.
- Consider real product photography for bestsellers — for your top-converting listings, switching to actual product photos removes compliance risk and typically converts better with Etsy's buyer audience, which skews toward authenticity.