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The KM Seller Brief · Etsy

Etsy’s New AI Listing Rules: What Sellers Need to Change Now

The KM Seller Brief · Marketplace updates and how to prepare for them.

On October 22, 2026, Etsy published new rules on how sellers can use AI in their listings. The headline changes: most listings now need at least one unedited photo of the actual item, AI-generated patterns, recipes and instructions are no longer allowed, and bot-generated listings will be removed, which Etsy says may also lead to the shop being removed. If you sell on Etsy, or you use AI tools to create listing images or descriptions, this is worth reviewing before the holiday rush.

The problem: what Etsy announced

In its Seller Handbook post, Important updates to AI use on Etsy, Etsy lists these policy changes:

The change was reported by CNBC and Retail Dive. CNBC reports that Etsy will still allow AI-generated art as long as sellers “play a clear role in what they create and are transparent about the process,” and that sellers must still disclose when an item is created using AI.

Why it matters to sellers

What counts as an exception

Etsy’s Listing Image Requirements help article explains how the rules apply to different item types:

Practical steps to keep your Etsy shop safe

  1. Audit your active listings. Export or list your active listings and mark each one: does it have at least one real, unedited photo of the actual item against a real background? Start with your best sellers.
  2. Shoot the missing photos. For listings that need one, take a straightforward, unedited photo of the real item. Etsy recommends making your first listing photo the clearest, most realistic representation of what buyers will receive.
  3. Review every edited image. Background swaps and lighting fixes are allowed, but check that no edit hides a flaw, changes the color, scale or materials, or makes the item look different from what ships.
  4. Check your patterns, recipes and instructions. If any functional guide was written by AI, remove or replace it with your own work, and add a photo of a real result made from it.
  5. Look at how your listings are created. If you use tools or scripts to generate listings in bulk, make sure a person reviews and shapes each listing. Etsy bans bot-generated listings without human involvement.
  6. Disclose AI use. If an item is created using AI, say so in the listing, and as a best practice Etsy suggests noting in the description if listing photos were edited with AI.
  7. Watch your Policy violations page. Etsy says that if a listing is removed, you can appeal through the Policy violations page in Shop Manager. Check it regularly so a removal doesn’t go unnoticed.

This post is general information, not legal advice. Etsy’s own policies and notices in Shop Manager are the final word, and policies can change.

Want a second pair of eyes?

If you’re not sure whether your listings and images meet the new rules, or you use AI and automation tools in your listing workflow, you can request a free written audit from KM Automations. We’ll look over your setup and send back plain-English notes on what to check. You can also browse the KM Automations blog for more seller guides.

Sources

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