When Etsy AI Gets It Wrong: Navigating Mistaken Policy Violations and Lack of Resolution

[#1]

Hi Etsy Community,

I'm reaching out today to share a not-so-unique and frustrating situation we've encountered since Etsy's update to their Creativity Standards. As a long-standing Etsy seller with over 25,000 sales, a consistent 5-star rating (7,000+ reviews), and until recently, a Star Seller badge, we've suddenly found ourselves in a frustrating predicament.

We design and manufacture all our products, which are not only one-of-a-kind but also carry our registered trademarks. However, we've been repeatedly hit with incorrect policy violations, seemingly due to a flaw in Etsy's AI moderation system. Our listings have been taken down multiple times due to alleged violations. These were only reversed after weeks of back-and-forth communication with support (time-consuming), where we provided images and videos of our design and manufacturing processes.

We operate a wholesale business alongside our Etsy shop, and also sell on multiple platforms (who wouldn't?). Many bookstores worldwide stock our products and use our product images for their listings. We believe this is causing Etsy's system to incorrectly flag our listings as resale items when, in fact, we are the original creators and manufacturers. There is also the issue of copycats on various dubious websites using our designs and selling products that resemble ours - but as you all well know, DMCA takedown requests take time and effort, and it is almost impossible to keep on top of it.

This situation has led to a series of policy violations, each of which we've successfully appealed. Etsy has acknowledged these violations were incorrect. However, the damage has been done - our Star Seller badge was revoked due to these erroneous flags and has yet to be reinstated, despite Etsy admitting their mistake.

Etsy's current system doesn't seem equipped to handle this sort of nuance, which seems to affect multiple sellers on this platform. As creators who also wholesale our products, we're being penalized for our success and growth.

How can Etsy better support sellers who are expanding their businesses? We'd love to hear your thoughts and experiences and, hopefully, bring attention to this issue so Etsy can improve its systems to better support sellers like us.

Thank you for your time and any insights you can share!

Andrey

[CraftyCornishMaids]

Etsy wants unique

I don't wholesale

I issue takedowns, where required

[GroundZeroCreations]

@DigTheDesign Where in the world did you come up with @CraftyCornishMaids was a manufacturer and wholesaler? Were you maybe looking at some other seller's shop? 

[CraftyCornishMaids]

@GroundZeroCreations 

they edited their post, quite a lot

[digitaldoodlebug]

It's a fair point though. If etsy is removing items due to finding the images on other sites, because they want unique items not available elsewhere, some reports say even amazon, then that puts sellers at risk who sell anywhere else. (which may run afoul of laws, like amazon having a price fix clause in their terms that didn't hold up to UK or USA laws.)

If we have the same items on amazon then etsy could flag it in their bot searches. If people can buy it on amazon, our websites, ebay, then it's not unique for etsy. Actually one seller did mention getting an item removed because it was sold on amazon... by her. Just depends on how far etsy decides to let the bots take it. I'm sure we'll all be waiting and watching with anticipation hoping it doesn't happen to us.

[GieseDeseiGns]

You do realize Amazon has a handmade category too, not everything is big and wholesale.

[CraftyCornishMaids]

@GieseDeseiGns 

I sell on Amazon, I am in the handmade category,  which they are currently merging into the other categories

[GroundZeroCreations]

@digitaldoodlebug Amazon does not remove listings that are sold on other platforms. The laws in the US are very convoluted, but I do know Amazon typically does not remove listings unless they are counterfeits, violate laws, trademark infringements, it's a duplicate listing, incomplete product info, safety concerns, too many customer complaints, etc. But the bottom line is Amazon does not tell you that you cannot sell your product on other sites.

I remember a long time ago they were telling sellers they could not sell their products at a lower price on another website. I don't think they do that anymore since the FTC filed a lawsuit against them. That was specifically mentioned in the suit.

https://www.ftc.gov/news-events/news/press-releases/2023/09/ftc-sues-amazon-illegally-maintaining-mo...

[digitaldoodlebug]

Right. I must have worded it confusingly. I meant etsy will pull listings if images are found anywhere else, amazon or users own websites. 

My reference was that may not be ok, it's anti-competitive. Similar to amazon running afoul of the FTC rules. But it takes time for anything to happen. Amazon reworded their terms and tried to keep similar wording. Hard to say if they have been active on it but according to forum posts they may still be in the USA to some extent. It says "setting a price on a product or service that is significantly higher than recent prices offered on or off Amazon;" but since it's run by AI it doesn't have to be "significantly" higher, just higher than amazon likes. 

[CraftyCornishMaids]

Of course amazon does not remove listings that are sold on other platforms, a lot of what is for sale there, is sold in loads of other places. Their selling point is that they have better prices and cheaper shipping -  on items you can get elsewhere.

They used to remove them, if you sold on another site, and your price was lower on the other site, but they stopped doing that years ago here, when the UK and Germany took them to court

and about 5 years after that, the USA threatened them, and they stopped doing that in the USA too.

[BusyBeaverBoutique]

AI gets it wrong ALL THE TIME. It's called digital hallucinations. It happened to me in August. My account was suspended because I supposedly shipped goods to a country on the sanction list. The last time I shipped something to Russia was 2021 and the other countries on the list I never shipped to. When this was all resolved I didn't even get a sorry.