Etsy AI disclosure for digital products: what sellers need to state

Etsy's Creativity Standards allow eligible seller-prompted AI creations. The Seller Policy, effective July 9, 2026, says sellers must disclose when AI was used to create an item. Put the notice in the listing description and make sure it matches how you made the product.

The disclosure belongs with the product facts. It should tell the buyer what happened without claiming that a tool or marketplace has settled questions about ownership, originality, or legal rights.

The relevant Etsy category is seller-prompted AI work, not any file produced by a generation tool. The work must come from the seller's original prompts or inputs. The same standards exclude prompt bundles sold as the product.

Eligibility does not turn the output into a rights-cleared asset. A seller still needs to inspect the finished design, decide whether it represents their work accurately, and reject material they do not have the right to use.

A useful disclosure is short, factual, and specific to the item. It says that an AI image generator helped create the artwork and that the seller supplied the prompts and direction. It does not need defensive language or a claim about what the disclosure proves.

Editorial example, not Etsy-required wording: "This digital artwork was created with the help of an AI image generator from prompts and direction provided by the seller." Adapt the sentence only when the creation record supports the change.

Listsy does not insert a creation-method disclosure into generated copy. Review the actual process and add the notice yourself when required. Seller-authored disclosure is preserved when you save. Etsy does not require the example sentence above; use wording that accurately describes your item.

Place the sentence in the listing description near the core product facts. Keep the separate buyer notice that this is a digital download and that no physical item will be shipped. One statement explains how the artwork was created. The other explains what the buyer receives.

Etsy's Seller Policy requires sellers to represent items accurately and respect third-party intellectual property. Etsy's Intellectual Property Policy also places responsibility on sellers to have the rights needed for their content. An AI disclosure does not replace that review.

Check both what went into the generation process and what came out. A seller may have permission to use an input but still receive an output with a recognizable logo or character. The reverse can also happen: an ordinary-looking output may have been built from an asset the seller was not allowed to use.

A disclosure can be accurate while the rest of the listing is misleading. The listing images must show the same design the buyer receives, and the description must name the actual file type and package contents. A shirt, frame, mug, or other prop may demonstrate a possible use, but it must not look like an included physical product.

For a Listsy transparent PNG product, the buyer file and listing images have different jobs. The buyer receives the transparent PNG inside a ZIP. The storefront images present that design on non-transparent backgrounds and in clear use cases. The seller should compare every image with the final PNG before publishing.

Read the whole listing before publishing. A file check or draft confirmation won't tell you whether the disclosure describes your work or whether every claim is accurate.

Listsy checks the Etsy draft and its attachments. You remain responsible for the product, disclosure, listing fields, rights, and shop settings. Review the unpublished draft and publish it yourself on Etsy.