I just answered this question in a thread, Follow the basic steps, most will apply to you.
https://www.etsy.com/teams/6861/keeping-up-with-cpsia/discuss/15155159/page/1 As to anyone else selling on Etsy. Some comply, some don't know enough, some don't give a hoot. Same with using Disney to sell their items. When you sign up to sell on Etsy you agree to follow the laws pertaining to your products. This is part of doing that. The fines can be $100,000 per infraction. I don't know about you, but that's not in my budget. The mechanics of compliance is really not that bad, once your do the basic first steps.
