Etsy announced new rules on the use of artificial intelligence in listings on 22 October. Every listing must have, as its first photo, an unedited shot of the actual item against a real background. Other images may be edited, including with AI, as long as they accurately show what the buyer will receive. Items created with AI remain allowed with disclosure, but listings generated by bots and functional guides written by AI are banned.

What it means: Etsy has thousands of Greek sellers of handmade jewellery, home decor and digital products, so the changes directly affect a sizeable community of small businesses. The requirement for an unedited first photo means sellers who relied only on renders or AI-generated images will have to photograph the real product. For those who genuinely make items by hand, this may be an advantage, because the marketplace had filled with listings that looked perfect but did not match what reached the customer. The move fits a wider trend: platforms are trying to protect buyer trust, while in the EU the Digital Services Act and unfair commercial practices law push in the same direction. Sellers would do well to review their active listings now, disclose AI use correctly where it applies and keep records of their original photos. The ban on listings mass-produced by bots also shows that catalogue automation will face closer scrutiny, something worth bearing in mind for anyone also trading on marketplaces such as Amazon or Skroutz.

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