Ongoing System Error – Shop Still Paused & Suspension Warning Despite Support Assurances

[TheSparkleCase]

Hi everyone,

I wanted to share my ongoing experience with Etsy’s system error and how it’s impacted my shop — in case others have gone through something similar.

In April 2025, my shop was mistakenly marked as closed due to a system issue. This triggered an automatic email to buyers stating that my shop was shut down, which caused confusion and led to five buyers opening refund cases. These were not due to any issues with my service — I’ve maintained strong performance stats: 99% message response rate, 98% on-time shipping, and a 5.0 average review rating.

On May 10th, I received a message saying I didn’t meet the customer service standard because of the case rate. I immediately contacted Etsy support. Every team member I spoke with confirmed that these cases should not have impacted my account, and that my shop would be reinstated without negative consequences. (Support ID: #19944XXX)

However, even after those confirmations, my shop is still shown as “paused.” On June 11th, I received another system warning that my account will be permanently suspended on July 1st. I've attached a screenshot of that message.

At this point, I honestly wonder: Is there no internal communication between Etsy teams? One department keeps assuring me that everything is fine and resolved, while the system continues to penalize my shop — limiting visibility, restricting traffic, and keeping it in “paused” status.

This has been incredibly frustrating:

• I’ve spent over 3 weeks defending myself against something I didn’t do.

• My traffic and sales have dropped significantly due to the ongoing restriction.

• I can’t confidently launch new products or make any plans to grow my business while my shop is under constant threat.

• And worst of all, if the July 1st suspension actually goes through, it may trigger the exact same case rate error all over again, repeating the cycle.

I’m doing everything I can to escalate this issue through official support channels, but I also want to raise awareness here. Has anyone else experienced something similar with false case rate penalties or recurring vacation mode triggers?

Thanks for reading — I would appreciate any tips, support, or even just knowing I’m not alone in this. I truly love selling on Etsy and want to continue growing my shop. I just need the platform to work with us, not against us.

Best,
Ella
Shop: TheSparkleCase

[UppNorthEh]

The shop you are posting from is open and has etsy payments, not paused.

and you are a star seller.  Normally in a situation you describe etsy takes away the star seller designation.

[CoquetteBath]

your shop isn't paused. I see it. If you mean, however, the shop you are posting from.

but I do see some issues. Using the Kindle IP...authorized to do so? Amazon approved? 

there's difference between selling a Kindle case and a case that fits readers like a Kindle...

secondly, no mockups are allowed anymore, as I understand it. 

Etsy is not going to work WITH you. They are going to provide a framework and expect you to work within THAT. After all, there are millions of sellers here, they cannot have various rules that fit various issues. Rules for thee but not for me mindset.

so the onus is on you to follow the rules. Review the Creativity Policy (which has recently changed). Review to see if your items are following all requirements (and, I think no on that, even if just from an IP standpoint).

once you do that, and are absolutely 1000% in compliance, then if something seems weird, it may be so. Right now, I can't tell which is due to one issue or another. And likely no one can (even you)...

good luck resolving this. 

[GodivaJewels]

You are trying to sell art work that is not yours. You have smiley faces in your banner and if you are selling those, that is IP infringement. There is nothing handmade with your items. You need to use your own art work at least on the items you are selling.

[BagmakerSupply]

@TheSparkleCase: "Is there no internal communication between Etsy teams?" Would anyone who frequents these forums be surprised if there was not? But in your situation it almost sounds like one issue is resolved and then Etsy finds another one.

"I just need the platform to work with us, not against us." I think that all of your fellow sellers feel the same. But that also means that we need to work with the platform and follow their rules regardless of our opinion of those rules. As @CoquetteBath points out some of your listings are not in compliance with Etsy rules, and perhaps to Etsy you appear to intentionally choose to not want to follow their rules.

For example. many of your listing thumbnails appear to violate Etsy's rule that it "is prohibited to use a photo of the blank product or a mockup with placeholder text (e.g. “Your Text Here”) as the main image." https://www.etsy.com/legal/policy/listing-image-requirements/253962679005

'Kindle Case' (as opposed to 'My Case for Kindle') implies the cases are made by, or at least approved by, the trademark owner and your licensing should be specified in the listing otherwise one could infer that you are counterfeiting and / or using someone else's intellectual property for your own financial enrichment without permission. You do not even acknowledge that the name is trademarked or who the trademark owner is. Did you read the Amazon Trademark Usage Guidelines before using the Kindle trademark?

Etsy let a lot of violations slide for a very long time, and now it is clear that Etsy has stepped up enforcement of the rules, rules which are constantly evolving. So you may be having more deactivations and suspensions.

Yes, Etsy can be frustrating to work with and no one will argue with you that their communication and processes could be improved. But you should also be happy that Etsy is giving you time to fix some of your other issues before the offending listings are also deactivated.