Etsy to restrict AI-generated content in effort to combat seller slop

Etsy announced new restrictions on AI-generated content, barring AI from creating patterns, recipes, or other items requiring buyer effort to finish, requiring at least one unaltered photo of the actual item against a real background, and banning bot-generated listings, while still allowing AI-generated art if sellers play a clear role and are transparent. Etsy VP of Customer Operations James Ossman said the marketplace only works when buyers and sellers trust each other, and Etsy will add a reporting function similar to LinkedIn's and use technology to identify misleading imagery and fraudulent listings. The company hosted $10.9 billion in goods sales in 2024, compared with about $75 billion for eBay and more than $700 billion for Amazon.