New Etsy Terms Of Use, Seller & Shipping Policy Updates Effective September 15, 2024
Etsy has updated their Terms of Use, Seller and Shipping policies impacting FedEx Smartpost claims, gift cards, arbitration and more, effective September 15, 2024.
Users are encouraged to read the entire updated agreement carefully, but here are a few excerpts highlighting some important changes and additions:
Shipping Policy Updates
Liability claims for FedEx Smartpost shipments must now be filed directly on FedEx instead of through Etsy as previously required.
Old version:
If you are using FedEx SmartPost, you must file claims for liability coverage for FedEx SmartPost shipping labels on Etsy for eligibility. See additional applicable FedEx SmartPost Terms. FedEx will not be liable for FedEx SmartPost claims filed directly with FedEx.
New version:
If you are using FedEx SmartPost, you must file claims for liability coverage for FedEx SmartPost shipping labels directly with FedEx. See additional applicable FedEx SmartPost Terms.
Shipsurance insurance can now be purchased for UPS shipments, in addition to USPS and FedEx.
Old Version:
When you purchase and use Shipping Labels on Etsy, you can purchase parcel insurance, when available, to protect your shipments. Insurance is available through Shipsurance for USPS and FedEx shipping labels and through Canada Post for shipping labels purchased from Canada Post.
New Version:
When you purchase and use Shipping Labels on Etsy, you can purchase parcel insurance, when available, to protect your shipments. Insurance is available through Shipsurance for USPS, UPS, and FedEx shipping labels and through Canada Post for shipping labels purchased from Canada Post.
Seller Policy Updates
Etsy sellers will no longer be allowed to offer their own gift cards for their shops. Gift cards used on Etsy may only be purchased from Etsy directly.
Sellers on Etsy may choose to offer gift certificates specifically for use in their own shops. Shop-specific gift certificates are not affiliated with Etsy Gift Cards.
By offering shop-specific gift certificates in your Etsy shop, you acknowledge the following:
Gift certificates are governed by various local laws. It is your responsibility as a shop owner to comply with all applicable laws.
You must include this sentence in the item listing for your shop-specific gift certificate: "This Gift Certificate is valid only in my Etsy shop, and it is only redeemable here. This is not an Etsy Gift Card."
You must ensure that your shop-specific gift certificates cannot be confused with official Etsy Gift Cards. Refer to Etsy’s Trademark Policy.
You must list and sell shop-specific gift certificates at full value.
Shop-Specific Gift Certificates are not permitted on Etsy. You can direct buyers to purchase an Etsy Gift Card that can be used at your shop and any other shop on Etsy that accepts Etsy Payments.
Terms Of Use Updates
Etsy's terms of use have added a new section specifying which entity acts as the merchant of record, depending on the country where the buyer is located.
If you are a buyer on Etsy, the Etsy entity acting as merchant of record may vary depending on the currency and location of your payment instrument. The merchant of record is Etsy, Inc. (US); Etsy Ireland UC (EU); Etsy UK Limited (UK); Etsy Canada Limited (Canada); Etsy Australia Pty Limited (AUS); and Etsy UC (ROW).
The terms also removed some language about Gift Cards, likely related to the previously mentioned Gift Card policy changes.
Old version:
Gift Cards and Promotions.
You acknowledge that Etsy does not make any warranties with respect to your Gift Card balance and is not responsible for any unauthorized access to, or alteration, theft, or destruction of a Gift Card or Gift Card code that results from any action by you or a third party.You also acknowledge that we may suspend or prohibit use of your Gift Card if your Gift Card or Gift Card code has been reported lost or stolen, or if we believe your Gift Card balance is being used suspiciously, fraudulently, or in an otherwise unauthorized manner.
If your Gift Card code stops working, your only remedy is for us to issue you a replacement Gift Card code. By participating in a special offer or promotion, you agree that you may not later claim that the rules of that special offer or promotion were ambiguous.
New version:
Promotions.
Etsy special offers or promotions are managed by Etsy in its sole discretion and redemption of and participation in such offers or promotions are subject to Etsy's sole discretion. Etsy is not responsible for special offers or promotions provided by sellers.
What was once referred to as the "Arbitration Agreement and Class Action Waiver" is now titled "Arbitration and Dispute Resolution Agreement (North and South America)", with several important changes to the terms of arbitration.
Most importantly, if the dispute is less than $25,000, the arbitration will be documents-only with no in-person or telephonic hearing and if the amount is $25,000 or more, the arbitration will be held by videoconference - but there will be no in-person hearing.
Old version:
The arbitration will be conducted in the English language by a single arbitrator. The arbitration hearing (if any) will be held by videoconference, unless either party requests an in-person hearing and the arbitrator agrees.
If an in-person hearing is required, it will be held in the county where you live (for US residents), New York County, New York (for non-US residents), or as determined by the arbitrator (in the case of Batch Arbitration).
New version:
The arbitration will be conducted in the English language by a single arbitrator. Unless otherwise agreed by the parties or ordered by the arbitrator, (i) if the amount in dispute is less than $25,000, the arbitration will be conducted as a documents-only arbitration (i.e., there will be no in-person or telephonic hearing); and (ii) if the amount in dispute is $25,000 or more, the arbitration will be held by videoconference (i.e., there will be no in-person hearing).
If an in-person hearing is required, it will be held in the county where you live (for US residents), New York County, New York (for non-US residents), or as determined by the arbitrator (in the case of Batch Arbitration).
In case of Batch Arbitration, Etsy is expanding the allowable size per batch of similar claims from 50 to 100.
Old version:
To ensure efficient resolution, if within a 90-day period, 25 or more claimants submit Notices of Dispute or file arbitrations raising similar claims (i.e., with the same or similar facts or events and legal issues) and are represented by the same or coordinated counsel, the disputes must be arbitrated in batches of up to 50 claimants each (“Batch”).
Specifically, upon notice from either side, the AAA shall group the claimants into: (1) a single Batch (if there are 25-50 claimants), or (2) Batches of 50 claimants each, with a smaller, final Batch consisting of any remaining claimants (if there are more than 50 claimants).
New version:
To ensure efficient resolution, if within a 90-day period, 25 or more claimants submit Notices of Dispute or file arbitrations raising similar claims (i.e., with the same or similar facts or events and legal issues) and are represented by the same or coordinated counsel, the disputes must be arbitrated in batches of up to 100 claimants each (“Batch”).
Specifically, upon notice from either side, the AAA shall group the claimants into: (1) a single Batch (if there are 25-100 claimants), or (2) Batches of 100 claimants each, with a smaller, final Batch consisting of any remaining claimants (if there are more than 100 claimants)
New users are still able to opt out of arbitration within 30 days, while existing users are no longer able to opt out, which makes sense since the original 30 day period from when this arbitration clause first went into effect last year has passed.
Old version:
You have a limited right to opt out of this Arbitration Agreement (excluding Section 11.I). Specifically, if you are a new user of our Services, you can opt out of this Arbitration Agreement within 30 days after you first accept the Terms. If you are an existing user of our Services, you can opt out within 30 days after the effective date (listed above).
New version:
If you are a new user of our Services, you can opt out of this Arbitration Agreement (excluding Section 11.I) within 30 days after you first accept the Terms.
How will these changes impact your Etsy business? Let us know in the comments below!
