Etsy Product Compliance & Safety Requirements for Sellers

Etsy’s marketplace thrives on creativity and authenticity, but maintaining trust means meeting strict safety, labeling, and regulatory requirements.

In 2025, Etsy sellers face heightened scrutiny from both consumers and regulators, making compliance more essential than ever.

This guide explains everything you need to navigate Etsy product compliance standards, from category-specific rules to global documentation requirements.

Let’s jump right in!

What Is Etsy Compliance: What Sellers Need to Know

Compliance on Etsy means following safety rules, using clear labels, and keeping the right documentation.

Etsy's compliance guidelines focus on two key areas:

• Product Safety Standards: Requirements ensuring consumer protection and safe usage.

• Regulatory Documentation: Proof that your products adhere to local and global safety regulations.

Recent Etsy Compliance Updates (2024-2025)

Etsy has rolled out several major compliance-related updates in 2024 and 2025 that affect how sellers list, manage, and deliver products on the platform.

These changes align Etsy more closely with evolving legal regulations (especially in the EU) and reflect the platform’s increased focus on product safety and buyer trust.

April 2025 – GPSR Compliance Update

To meet the requirements of the EU's General Product Safety Regulation (GPSR), Etsy introduced a mandatory product safety section within listings.

This impacts any seller offering goods to buyers in the EU or Northern Ireland.

➤ Key requirements:

• Sellers must include the manufacturer's name, email, and postal address.

• If the manufacturer is outside the EU, sellers must appoint and list an EU-based Responsible Person.

• Etsy now provides integration support via third-party partners like Cert-Rep and International Associates to help non-EU sellers meet this requirement.

• Non-compliance can result in product removals or account suspensions.

As of February 2025, sellers can opt out of selling to the EEA/NI regions directly through shop settings.

However, if you continue selling in these markets, GPSR compliance is not optional.

September 2024 – New Seller Standards

Etsy implemented stricter seller performance policies on September 15, 2024, to enhance marketplace integrity and buyer satisfaction.

These new seller standards affect nearly all operational aspects of your shop.

➤ Key focus areas:

• Order fulfillment deadlines must be met consistently.

• Listings must include accurate product descriptions and photos.

• Sellers must disclose print-on-demand partners when applicable.

• Fast, clear communication with buyers is now a performance expectation.

• Negative reviews and policy violations may trigger penalties, including lowered search visibility or account holds.

These policies are enforced through a combination of automated systems and Etsy support reviews, and they apply to sellers of all sizes across every category.

Industry-Specific Compliance Standards

Every product category carries unique compliance expectations.

Below are critical Etsy industries and their specific compliance requirements.

Etsy-Specific Compliance Rules Sellers Must Follow

Etsy’s marketplace operates under strict compliance rules that reinforce trust, ensure product safety, and uphold regulatory standards.

Below, you'll find a detailed breakdown of Etsy product compliance requirements:

Product Safety Documentation and Certifications

Etsy requires specific safety documentation across multiple regulated categories.

Sellers must proactively maintain and provide verifiable safety certifications upon Etsy’s request.

➤ Essential safety documents include:

• Cosmetic Product Safety Reports (CPSRs): These are mandatory for cosmetics and personal care products sold to buyers in the EU, demonstrating product safety and compliance with European standards.

• Material Safety Data Sheets (MSDS): Required for consumer electronics, DIY tools, and certain sporting goods, detailing potential hazards, safe handling, and storage.

• FDA and EFSA Approvals: For food & beverage, OTC healthcare, pet supplements, and other consumables, official compliance with FDA (US) and EFSA (EU) standards is compulsory.

• Battery Safety Certifications (UN 38.3): Essential for electronic products containing lithium batteries to confirm safety in handling, transport, and consumer usage.

Labeling Standards Across Product Categories

Accurate and compliant labeling is central to Etsy’s compliance approach.

Sellers must adhere strictly to industry-specific labeling regulations to maintain listings on the platform.

➤ Labeling requirements per industry:

• Food & Beverage: Nutritional labels are compliant with FDA and EFSA standards, and allergen disclosures are detailed and have clear expiration dates.

• Personal Care & Cosmetics: Mandatory INCI ingredient lists (international standardized nomenclature), batch numbers, and clear usage instructions.

• OTC Healthcare: FDA-approved labels that clearly indicate active ingredients, dosages, health warnings, and proper use instructions.

• Tobacco Products: Labels comply with the FDA (US) and Tobacco Products Directive (EU), clearly indicating health warnings and appropriate age-restriction notices.

• Pet Care Products: Species-specific labeling, clear ingredient transparency, and safety certifications compliant with FDA and EFSA pet-care guidelines.

Compliance with Chemical Safety Regulations

Etsy closely monitors compliance with global chemical safety standards across multiple industries to ensure products meet environmental, health, and safety requirements.

➤ Etsy-enforced chemical safety standards include:

• REACH (EU): Required compliance for sellers of furniture, textiles, DIY tools, and consumer electronics, ensuring the limited use of hazardous chemicals.

• CARB (US): Furniture and DIY product sellers must ensure wood-based products comply with California Air Resources Board (CARB) emissions regulations, confirming safe indoor air quality standards.

Mandatory Sustainability Certifications and Practices

Etsy emphasizes sustainable practices, requiring sellers to comply with recognized environmental standards and certifications.

➤ Essential sustainability guidelines include:

• Sustainable Material Certifications: FSC certification for wood products, OEKO-TEX or GOTS certifications for textiles.

• Eco-Friendly Packaging: Use of recyclable, biodegradable, or reusable packaging materials encouraged and enforced, minimizing environmental impact.

• Ethical Sourcing Documentation: Verification and clear disclosures are required to prove ethical sourcing practices, avoiding materials associated with unethical labor or harmful environmental practices.

Prohibited and Restricted Ingredients & Materials on Etsy

Etsy bans or restricts hundreds of ingredients based on local laws and its own safety policies.

Some of those are:

• In cosmetics, Etsy bans black henna (PPD), hydroquinone, azelaic acid (in some forms), mercury, and prescription-only ingredients like tretinoin or careprost.

• In food and pet treats, Etsy follows FDA/EFSA rules on banned additives, heavy metals, and contamination thresholds.

• Products containing dangerous levels of lead, cadmium, arsenic, or formaldehyde are prohibited across multiple categories.

• Certain phthalates, parabens, and synthetic fragrances are restricted or must meet regional limits (especially in the EU).

➤ Bottom line: If a regulatory agency or Etsy bans an ingredient, it must not appear in your formulation, packaging, or product description.

Product Classification: Don’t Cross Into Drug, Device, or Pesticide Territory

One of Etsy’s biggest enforcement points is ensuring sellers don’t accidentally (or intentionally) list regulated products in the wrong category.

For example:

• A lip balm marketed as “heals cold sores”? That’s a drug.

• An essential oil listed as “anti-anxiety” or “anti-fungal”? That’s a drug or pesticide, depending on the claim.

• A pet shampoo labeled as “kills fleas”? That becomes an EPA-regulated pesticide.

• A comb marketed as a “lice remover” or a red light mask for skin? These may be medical devices, not Etsy-allowed cosmetics.

➤ Avoid: medical claims, SPF claims, antibacterial claims, or any wording that shifts your product into FDA/EPA/FDA-device territory.

Etsy Enforcement: What Triggers Reviews, Removals, or Suspensions

Etsy uses a mix of algorithmic review, buyer reports, and manual enforcement to catch non-compliant listings.

➤ Etsy may flag your product if:

• You list in a restricted category (e.g., medical products)

• You make banned claims (e.g., “cures acne,” “pain relief,” “kills bacteria”)

• You list ingredients from Etsy’s internal banned list

• Your label omits warnings or looks unprofessional

• Your product has caused a customer complaint, allergic reaction, or harm

• A regulatory authority flags your listing or category (e.g., FDA letter, UK OPSS review)

If flagged, Etsy may request:

• Ingredient list

• Label image

• Proof of safety testing or notification (EU)

• Identification of your Responsible Person (EU requirement)

Failure to respond quickly or accurately can result in listing deactivation or shop-wide penalties.

How to Stay Compliant on Etsy?

Here's a practical, seller-friendly framework for getting and staying compliant.

Step 1: Understand Which Rules Apply to Your Product

Many sellers list their first product, assuming Etsy will flag anything risky automatically, but enforcement usually happens after. And by then, it’s too late.

For example, if you sell to the EU, the GPSR (General Product Safety Regulation) now applies to almost all consumer products.

You can start this step by researching your product category: a handmade lip balm, a pet shampoo, or a herbal tea, which all fall under different laws depending on where you're selling.

➤ Actions to take:

• Review Etsy’s category-specific policies (e.g., for cosmetics, food, or pet products).

• Check your product against relevant regional laws, such as FDA (US), EFSA or CPNP (EU), OPSS (UK), REACH, and MOCRA.

• Verify whether your item is legally a cosmetic, drug, food, pesticide, or device.

➤ What can help you stay on track:

• Use an AI compliance assistant to classify your product based on ingredients and function.

• Get real-time alerts when a product contains ingredients regulated as drugs or banned in your sales region.

• By leveraging AI compliance, automatically detect if you’ve crossed into a restricted category (e.g., SPF claim = OTC drug).

Step 2: Collect and Validate the Right Documentation

A major cause of listing removal is the inability to produce documentation when Etsy requests it.

Even small shops need to be able to prove their product is safe and legal to sell.

Additionally, GPSR requires that products sold in the EU have clear safety information, instructions (if needed), and documentation that proves product safety.

Non-EU sellers must appoint an EU-based Responsible Person for GPSR compliance.

➤ Actions to take:

• Gather CPSRs for cosmetics, SDS for raw ingredients, CPNP notifications, MSDS sheets, and batch test results where applicable.

• If you're selling food, collect allergen disclosures, shelf-life data, and nutritional analysis.

• Get certificates for color additives, fragrance compliance (IFRA), or GMP where required.

➤ What can help you stay on track:

• Generate a tailored list of required documents based on your product's region, category, and claims.

• Flag missing or outdated certificates before the listing goes live.

• Scan supplier-provided documentation and cross-reference it against regulatory requirements using AI.

Step 3: Organize Your Documentation for Fast Retrieval

You might have the right documents, but if you can’t find them when Etsy requests proof, you’re still at risk.

Sellers often scramble during surprise compliance reviews.

➤ Actions to take:

• Create a cloud-based archive sorted by product SKU and region.

• Use version control to avoid submitting outdated documents.

• Ensure ingredient sheets, certificates, and test reports are consistently named and stored.

➤ What can help you stay on track:

• Auto-tag and index every uploaded file by product, document type, and expiration date.

• Set up a searchable dashboard that gives you one-click access to any file Etsy might ask for.

• Link documentation to each Etsy listing so you always know what’s covered and what isn’t.

Step 4: Keep Compliance Updated as Products Change

A label update, a new supplier, or a slight formula tweak can instantly render your existing documentation obsolete.

Etsy and regulators expect your records to reflect what’s actually being sold.

➤ Actions to take:

• Track every change in formula, packaging, and claims.

• Ask suppliers for updated certificates after any material change.

• Ensure your labeling still matches the documentation (especially for INCI or allergen declarations).

➤ What can help you stay on track:

• Use AI to detect listing updates and prompt a compliance review.

• Automatically flag ingredient changes that impact labeling or legal limits.

• Set alerts for documents that need to be revalidated when your formula or sourcing shifts.

Step 5: Respond Quickly and Accurately to Etsy Compliance Requests

When Etsy sends a request for proof (e.g., “show your ingredient list” or “provide EU notification number”), sellers often lose time responding or send incomplete files.

That can result in deactivation.

➤ Actions to take:

• Familiarize yourself with Etsy’s Manage Your Compliance system.

• Proactively upload documentation for high-risk products, even before Etsy asks.

• Double-check that your ingredient list, label photo, and claims match the documents.

➤ What can help you stay on track:

• Prepare pre-formatted documentation packages that match Etsy’s preferred formats.

• Instantly locate and submit the right files through a compliance dashboard.

• Maintain a response log for past requests to avoid repeating mistakes or resubmitting incorrect data.

Step 6: Stay Ahead of Etsy Policy Updates and Regulatory Changes

Rules are constantly changing, and Etsy updates its cosmetic policies, banned ingredient lists, and prohibited claims regularly.

Global laws like MOCRA (US), REACH (EU), and OPSS (UK) are also evolving fast.

➤ Actions to take:

• Subscribe to Etsy’s seller update feed and regulatory newsletters.

• Watch for new restrictions in your product category (e.g., new allergen labeling, banned colorants).

• Adjust claims and labels accordingly to avoid future violations.

➤ What can help you stay on track:

• Receive weekly AI-curated alerts summarizing Etsy and regulatory updates by product type.

• Filter compliance changes by market (US, UK, EU) and category (cosmetics, electronics, etc.).

• Get automatic recommendations on what listings or labels need updating based on new rules.

But let’s be honest, keeping up manually isn’t sustainable.

When you’re running a growing shop, fulfilling orders, and creating products, tracking every compliance update across Etsy, the EU, and the US quickly becomes a full-time job.

It’s too easy to miss a new banned allergen, overlook a label change, or assume your listing still meets Etsy’s ever-evolving standards.

How Signify Helps You Stay Compliant on Etsy

Signify is an AI compliance agent that helps you navigate product compliance and regulations with greater clarity and control.

Whether you sell handmade cosmetics, pet care products, or goods targeting EU buyers, Signify helps you stay organized, monitor compliance risks, and adapt to regulatory changes.

Here’s how Signify supports your compliance efforts:

• Automated Label Checks: Instantly validate ingredient lists, claims, and warnings against regulatory standards before listing a product.

• Packaging & Artwork Accuracy: Ensure your labels and packaging meet policy and global compliance expectations across all markets.

• Smart Compliance Checklists: Turn complex regulations into clear, trackable steps to help you stay on top of product documentation and testing.

• Regulatory Risk Monitoring: Detect potential violations early with AI-driven scans of listings and product data.

• Supplier & Documentation Oversight: Verify that suppliers meet compliance standards and organize all records for easy access during regulatory reviews.

Signify can help with high-risk industries like:

• Cosmetics & Personal Care

• OTC & Herbal Health Products

• Food & Beverage

• Pet Treats & Grooming

• Candles, Fragrance & Essential Oils

• Electronics & Battery-Powered Goods

• Furniture, Tools & DIY Kits

Try Signify free today and stay compliant, organized, and one step ahead without getting overwhelmed.