California Etsy Seller Suspension Demand Letter

[Your Name] [Your Address] [City, CA ZIP] [Your Email] [Date] Etsy, Inc. Attn: Legal Department 117 Adams Street Brooklyn, NY 11201 Via Email: legal@etsy.com Via Certified Mail, Return Receipt Requested Re: Demand for Shop Reinstatement and Release of Funds Shop Name: [Your Shop Name] Shop ID: [Your Shop ID Number] Account Email: [Your Etsy Email] Funds Withheld: $[Amount] Suspension Date: [Date] Dear Legal Department: I am a California-based Etsy seller whose shop was suspended on [Date] and whose funds totaling $[Amount] remain withheld by Etsy. Despite submitting a detailed appeal on [Appeal Date], Etsy has [denied my appeal / failed to respond / provided only a generic response]. This letter constitutes formal demand for reinstatement and immediate release of my funds. SHOP HISTORY AND STANDING I have operated [Shop Name] on Etsy since [Year], maintaining [describe positive metrics: Star Seller status, X 5-star reviews, X% positive feedback, ODR below X%]. My shop [describe your products: sells handmade jewelry I design and create in my California studio / specializes in vintage clothing sourced from estate sales / etc.]. I have always endeavored to comply with Etsy's policies and have no prior suspensions or serious warnings. SUSPENSION CIRCUMSTANCES On [Date], I received notice that my shop was suspended for [quote the reason given, e.g., "violation of Etsy's Handmade Policy" or "intellectual property infringement"]. The notice provided no specific details about which listings or actions triggered the suspension. [For Handmade Policy Violations:] This suspension is erroneous. All items in my shop are [handmade by me personally / designed by me and produced with disclosed production partners / vintage items over 20 years old]. I have documented my production process with [photographs of my workspace, videos of items being made, receipts for raw materials, etc.]. The suspension appears to be based on algorithmic pattern-matching rather than actual policy review. [For IP Violations:] The intellectual property claim against my shop is invalid. [Explain why: I have authorization from the rights holder / My use constitutes fair use / The items are authentic goods sold under the first sale doctrine / The trademark claim is for a different class of goods / etc.]. I filed a DMCA counter-notification on [Date] and/or contacted the complainant, who [has not responded / confirmed they would not pursue litigation / admitted the claim was in error]. [For ODR/Case Issues:] My Order Dissatisfaction Rate was elevated due to [specific circumstances: shipping delays caused by carrier issues / a coordinated negative review campaign / cases that were resolved in my favor but still counted]. I have implemented [specific improvements] to address these issues and my metrics have [improved/stabilized]. FUND WITHHOLDING IS UNJUSTIFIED Etsy is currently withholding $[Amount] from my payment account, representing [X] months of sales revenue. This fund hold: 1. Exceeds any legitimate chargeback risk - the 180-day chargeback period for my oldest held funds has [passed / will pass on Date], yet Etsy has not released these funds; 2. Is disproportionate to any actual claims - I have [zero / X] pending chargebacks or cases totaling only $[Amount]; 3. Violates California law by indefinitely retaining funds without providing an accounting of legitimate claims against them. LEGAL VIOLATIONS Etsy's actions violate California law: California Unfair Competition Law (B&P Code Section 17200) Etsy's suspension of my shop without adequate explanation, meaningful appeal process, or timely fund release constitutes an unfair business practice. The UCL prohibits business practices that are "unfair" even if technically permitted by contract terms, particularly when there is substantial injury to consumers/sellers with no countervailing benefit or less harmful alternative. Breach of Contract and Implied Covenant of Good Faith Even under Etsy's Terms of Use, the platform must exercise its discretion in good faith. Suspending my shop based on algorithmic error, refusing to provide specific violation details, and indefinitely holding my funds without legitimate justification breaches the implied covenant of good faith and fair dealing under California Civil Code Section 1654. Conversion Etsy's continued retention of my funds beyond the chargeback period, without documented claims against those funds, constitutes conversion of my property under California law. [For IP Cases:] DMCA Violation (17 U.S.C. Section 512) Etsy has failed to restore my listings within the statutory period following my counter-notification, and/or the original takedown was based on material misrepresentation actionable under Section 512(f). DEMAND I demand that Etsy: 1. Immediately reinstate my shop, [Shop Name], with all listings restored; 2. Release all withheld funds ($[Amount]) within seven (7) days of this letter; 3. Provide a detailed written explanation of the specific policy violation(s) alleged and the evidence supporting the suspension; 4. Remove any internal flags or negative marks that would affect my account standing, search ranking, or eligibility for Etsy programs; 5. Confirm in writing that no adverse action will be taken against my account in retaliation for this dispute. DEADLINE AND CONSEQUENCES If I do not receive satisfactory resolution within fourteen (14) days of this letter, I will: - File a complaint with the California Attorney General's Office - File a complaint with the Better Business Bureau - Initiate arbitration under Etsy's Terms of Use (while reserving all arguments that the arbitration clause is unenforceable under California law) - Pursue litigation in California Superior Court seeking restitution under the UCL, contract damages, conversion damages, and any other available relief - Seek recovery of attorney fees as permitted by California law I reserve all rights and remedies available under California and federal law. Please direct all correspondence to [Your Email] and the address above. Sincerely, [Your Signature] [Your Printed Name] Enclosures: - Shop suspension notification from Etsy - Appeal submission and Etsy's response (if any) - Documentation of handmade production process - Sales history and account metrics - Payment account statement showing withheld funds - Timeline of events

DMCA Counter-Notification To: Etsy Legal Department (legal@etsy.com) I, [Your Full Legal Name], declare under penalty of perjury that: 1. I am the owner of Etsy shop [Shop Name], Shop ID [Number]. 2. The following material was removed or disabled as a result of a DMCA takedown notice: [List specific listings by title and URL] 3. I have a good faith belief that the material was removed or disabled as a result of mistake or misidentification. [Explain why - e.g., "I created this original artwork myself" or "This is a product review/commentary protected by fair use" or "I have a license from the copyright holder"] 4. I consent to the jurisdiction of the Federal District Court for [your district, e.g., "the Northern District of California"] and will accept service of process from the complainant. 5. My contact information: Name: [Your Full Legal Name] Address: [Your Full Address] Phone: [Your Phone Number] Email: [Your Email] Signature: [Your Signature] Date: [Date]