Etsy Seller Disputes FAQ

When Etsy suspends your seller account in California, you have rights under the platform's Terms of Use, federal law, and California state statutes. Etsy may suspend accounts for policy violations, intellectual property complaints, or performance issues. Under California Civil Code Section 1636, contracts must be interpreted according to mutual intention, meaning Etsy should follow its stated policies and procedures. California Business and Professions Code Section 17200 prohibits unfair, unlawful, or fraudulent business practices, potentially applicable to arbitrary suspensions that violate stated procedures.

Document the suspension notice, cited violations, and your account history. Submit an appeal through Etsy's designated process, addressing the specific violation, corrective actions taken, and preventive measures implemented. The implied covenant of good faith and fair dealing under California law requires Etsy to act fairly. For permanent suspensions significantly impacting your livelihood, consider whether the suspension violates contract terms or California law. File complaints with the California Attorney General's office and FTC for potentially improper practices.

Disputing Etsy buyer cases in California requires prompt action within the platform's case system and awareness of California commercial law protections. When a buyer opens a case for non-delivery or item not as described, respond within Etsy's timeline (typically 3 days) through the Resolution Center. For non-delivery disputes, provide tracking information showing delivery - under California Commercial Code Section 2504, delivery to carrier typically transfers risk to buyer for shipment contracts.

For 'not as described' claims, California Business and Professions Code Section 17500 requires accurate product descriptions, so document that your listing accurately represented the item. Include photographs of the item before shipping, shipping documentation, and all buyer communications. California Commercial Code Section 2607 requires buyers to notify sellers of defects within reasonable time. If the buyer's claim appears fraudulent, document evidence supporting your position. Etsy tends to favor buyers, so comprehensive documentation is essential. If Etsy rules against you despite accurate descriptions and proper shipping, consider whether their decision violates their stated policies, which may support breach of contract claims.

California and federal law provide several protections for Etsy sellers facing intellectual property complaints. For copyright claims, the Digital Millennium Copyright Act (17 U.S.C. Section 512) allows counter-notifications when you believe the claim is invalid - state under penalty of perjury that the removal was mistaken. For trademark claims, the first sale doctrine (Kirtsaeng v. John Wiley & Sons) allows resale of genuine goods.

California Business and Professions Code Section 14340 addresses trademark issues, while California Civil Code Section 3426 (Uniform Trade Secrets Act) protects against misappropriation claims if you lawfully developed your designs. If accused falsely, California Code of Civil Procedure Section 425.16 (anti-SLAPP statute) may provide remedies against baseless IP claims designed to harm competitors. Document your original design process, creation dates, and any influences or permissions. For vintage or handmade items incorporating existing designs, research fair use and parody exceptions under copyright law. Respond promptly to IP complaints through Etsy's process, and consider consulting an intellectual property attorney for complex claims involving significant business impact.

Etsy's handmade policy creates specific legal obligations for California sellers under consumer protection laws. Etsy requires items in the Handmade category to be made or designed by the seller, with production partners disclosed. Under California Business and Professions Code Section 17500, false advertising (including misrepresenting items as handmade when they're not) is unlawful. California Civil Code Section 1770 (Consumer Legal Remedies Act) prohibits misrepresenting goods' characteristics, including their origin and production method.

Sellers using production partners must disclose this in their listings, and partners must be listed in shop profiles. Failure to comply may result in listing removal, account suspension, and potential civil liability under California consumer protection laws. Document your production process, including photographs, design files, and supplier relationships. For items involving production assistance, maintain clear records of your design involvement and partner agreements. California law requires truth in advertising, so ensure all claims about handmade nature, materials, and production methods are accurate. Violations can result in penalties including actual damages, statutory penalties, and attorney's fees under certain circumstances.

When Etsy withholds funds from California sellers, legal options depend on the reason for the hold and applicable financial regulations. Etsy may hold funds for new sellers (up to 90 days), during open cases, or when account issues arise. Under California Financial Code Section 2000 et seq., Etsy Payments operates as a regulated money services business with consumer protection obligations. California Civil Code Section 3287 allows recovery of interest at 10% annually on wrongfully withheld funds.

If holds exceed stated timeframes or appear arbitrary, California Business and Professions Code Section 17200 may provide recourse for unfair practices. Document the hold amount, duration, stated reasons, and your compliance with policies. For extended holds, file complaints with the California Department of Financial Protection and Innovation. The implied covenant of good faith and fair dealing requires Etsy to honor reasonable fund release expectations. California small claims court (up to $10,000) provides a venue for fund recovery claims. For significant amounts, consult an attorney about breach of contract claims. Maintain detailed records of withheld amounts, hold durations, and any business harm to support potential damage claims.

Etsy fee disputes in California are governed by the Terms of Use and California contract law, with specific consumer protection considerations. Etsy charges listing fees, transaction fees, payment processing fees, and various promotional fees. Under California Civil Code Section 1636, fee terms must be interpreted according to mutual intention at contract formation. California Business and Professions Code Section 17500 prohibits misleading fee representations.

If Etsy charges fees inconsistent with stated terms, you may have claims for breach of contract and violation of consumer protection laws. Document all fee charges, compare to stated fee schedules, and identify any discrepancies. California Civil Code Section 1689 allows contract rescission for material misrepresentation, potentially applicable to significantly misleading fee disclosures. For automatic fee deductions you dispute, California Commercial Code provisions regarding unauthorized debits may apply. Appeal disputed fees through Etsy's support channels first. For unresolved disputes, file complaints with the California Attorney General's Consumer Protection Division. Small claims court provides a venue for recovering improper fees up to $10,000. Consider whether fee practices violate the implied covenant of good faith, particularly for unexpected or undisclosed charges.

Etsy's Star Seller program creates specific considerations for California sellers regarding performance metrics and potential legal issues. The program evaluates response rate, shipping times, and review scores, affecting search visibility and badge status. Under California Civil Code Section 1636, program terms must be applied as reasonably expected. If Etsy applies metrics inconsistently or changes requirements without adequate notice, California Business and Professions Code Section 17200 may apply to unfair practices.

California Civil Code Section 1639 requires contract interpretation giving effect to reasonable expectations. Document your performance metrics, badge status changes, and any inconsistent application of standards. The implied covenant of good faith requires Etsy to apply program criteria fairly. For metrics affected by circumstances beyond your control (carrier delays, buyer non-responsiveness), document these issues and appeal through Etsy's process. California sellers may argue that arbitrary badge removal violates contract terms when metrics are met. For significant business impact from program changes, consider whether unilateral modifications breach the implied covenant. Maintain detailed records of your performance, program requirements at time of enrollment, and any communications regarding status changes.

Shipping disputes between Etsy sellers and California buyers involve specific legal considerations under state commercial law and platform policies. Under California Commercial Code Section 2504, when goods are shipped by carrier, risk of loss typically passes to the buyer upon delivery to the carrier. For shipment contracts, sellers fulfill their obligation by properly tendering goods to the carrier and providing necessary documents. Etsy's purchase protection may override these rules, often favoring buyers in non-delivery disputes.

Document all shipping with tracking, and use signature confirmation for items over $250. California Business and Professions Code Section 17500 requires accurate shipping time representations in listings. For delayed shipments, communicate proactively with buyers and update order information in Etsy. California Civil Code Section 1792.4 regarding implied warranties may affect buyer expectations for shipping timeframes. If carriers lose or damage packages, file claims with the carrier and document thoroughly. For systematic delivery issues in specific California areas, consider requiring signature confirmation or using alternative carriers. Maintain shipping receipts, tracking confirmations, and delivery photographs to support your position in disputes.

California's Proposition 65 (Health and Safety Code Section 25249.6) imposes specific warning requirements on Etsy sellers shipping products to California. The law requires warnings for products containing chemicals known to cause cancer or reproductive harm from a list of over 900 substances. Penalties for non-compliance can reach $2,500 per day per violation. Sellers must determine if products contain listed chemicals, which may require supplier documentation, testing, or product analysis.

Common items requiring warnings include jewelry with lead, wood products with formaldehyde, and items with certain plastics or coatings. Warning requirements apply when exposures exceed 'safe harbor' levels, but providing warnings is often prudent regardless. Etsy requires compliance with applicable laws, making Prop 65 compliance essential for California sales. Warning language must follow specific formats under the regulation. For handmade items, evaluate all materials for listed substances. Consider consulting with a Prop 65 compliance specialist for product lines with potential exposure. Non-compliance exposes sellers to private enforcement actions by citizen groups and attorneys, making proactive compliance more cost-effective than reactive defense.

Etsy's authority to modify or remove listings is addressed in the Terms of Use but subject to California legal limitations. Etsy may remove listings for policy violations, intellectual property complaints, or prohibited items. However, California Civil Code Section 1639 requires contract interpretation based on reasonable expectations, and arbitrary listing removal may violate these expectations. California Business and Professions Code Section 17200 prohibits unfair business practices, potentially applicable to listing removals that contradict stated policies.

The implied covenant of good faith under California law requires Etsy to act fairly in enforcing listing policies. Document all listing removals, stated reasons, and your compliance with policies. For intellectual property removals, you have counter-notice rights under the DMCA. Appeal removals through Etsy's process, demonstrating policy compliance. If Etsy removes listings without following stated procedures, consider whether this constitutes breach of contract. For significant business disruption from improper removals, California small claims court may provide a venue for damages. File complaints with the FTC and California Attorney General for patterns of improper listing removal. Maintain detailed records of all listings, content, and removal notices to support potential claims.