The undersigned Etsy sellers and supporters of small businesses, are calling on Etsy to urgently address the growing issue of automated listing deactivations that unfairly target original handmade products.

Etsy’s automated system has been deactivating legitimate listings without providing sellers with the opportunity to appeal/present evidence, resulting in financial losses and stifled business growth for many.

The problem stems from Etsy's new reliance on AI-driven systems that automatically deactivate listings when similar products appear on other platforms, even when those listings are stolen copies of original creations. As a result, many sellers are seeing their products taken down unfairly while sometimes counterfeit items remain active on other platforms.

In May 2024, Etsy’s CEO, Josh Silverman, assured investors that sellers would have the ability to appeal these decisions and prove the originality of their work. 
"As a seller, you can appeal that, you can tell us how you made it yourself, and it still ended up on AliExpress. And by the way, that's true sometimes. You can appeal that, but our default now is we take that down."

Despite this promise, many sellers are finding no process to appeal these decisions, leaving us with no recourse when our businesses are harmed by Etsy’s automated systems. We are asking for Etsy to live up to its commitments and provide the support and fairness that small business owners need.

Why This Matters:

Restricting Fair Competition:
Etsy’s practice of removing listings when similar items appear on other platforms restricts small sellers' ability to compete in the marketplace. This practice undermines our livelihoods and limits our ability to run our businesses freely. Whether the listings are stolen or sold by the original creator on multiple platforms, Etsy’s AI system is making unfair decisions without proper investigation, creating unnecessary barriers for small sellers.

Breach of Etsy’s Own Principles:
Etsy’s terms of service promise fairness, transparency, and trust between the platform and its sellers. Yet the current system bypasses these values. Sellers, including those with statutory declarations affirming their work is original, are not receiving adequate attention or proper review. This violates Etsy’s own commitments to fairness and transparency, leaving sellers without the protection we deserve.

Unfair Business Practices:
Without a robust appeals process in place, Etsy’s reliance on AI-driven decisions is harming many sellers, constituting what may be considered an unfair business practice under US consumer protection laws. We rely on Etsy to provide a stable and fair platform to operate our businesses. The current system unfairly penalizes creators, while counterfeit listings continue to flourish on other platforms.

Lack of Transparency and Support:
There has been no official communication from Etsy to address this growing problem, and no clear process for sellers to appeal decisions made by the AI system. Sellers have been left in the dark, forced to deal with lost revenue and unacknowledged inquiries. If this continues, more sellers will experience similar issues, damaging Etsy’s reputation as a platform for artisans and creators.

Our Request:
We, as Etsy sellers and supporters of small businesses, ask Etsy to immediately address these issues by:

Providing a clear and transparent appeal process for deactivated listings, ensuring sellers can present proof of ownership and originality.
Conducting a thorough review of the automated systems used to identify counterfeit listings and ensure that legitimate creators are not penalized.
Restoring deactivated listings that have been wrongly taken down, without undue delays, once the seller has proven their authenticity.
Improving communication with sellers regarding deactivations and changes to the platform’s policies, to avoid confusion and harm to small businesses.

What Could Happen if These Issues Aren’t Addressed:

If Etsy fails to address these concerns, sellers may be forced to take further action, including filing complaints with regulatory bodies like the Federal Trade Commission (FTC), the DOJ's Antitrust Division, and the Better Business Bureau. With Etsy operating in multiple jurisdictions, complaints could also be filed with relevant authorities abroad. Media outlets are already taking note of Etsy's practices, and social platforms like X and Instagram have seen growing attention to these issues from affected sellers. If left unresolved, the harm to Etsy’s reputation may be significant, as the platform could be seen as failing to protect the very businesses it was designed to support.

We hope Etsy will recognize the importance of addressing this problem and take the necessary steps to ensure that its sellers can continue to thrive in a fair and supportive environment. As sellers, we are committed to growing our businesses on Etsy, but we need Etsy to uphold its promise of fairness and transparency.

Sign this petition to demand that Etsy take immediate action to protect small businesses from unjust automated listing deactivations. Together, we can ensure that the marketplace remains a vibrant platform for creators, artists, and entrepreneurs.