There’s a new law going around Etsy seller groups right now, and from the way it’s being talked about, you’d think you need to overhaul your whole shop by next month. You don’t. So let’s walk through it calmly, because for most of what you do, nothing changes at all.
New York recently signed a law about “synthetic performers” in advertising, and it takes effect June 9, 2026. The short version: if an ad uses an AI-generated person, that has to be disclosed. That’s the whole idea.
What actually counts
A “synthetic performer” is a fake human created by AI. A model, a face, a person, made to look real, but who isn’t a real, identifiable person. So if you’ve used an AI tool to generate a photo of a model wearing your earrings, or a video of an AI “spokesperson” talking about your candles, that’s what the law is about. Those images need a clear label letting buyers know the person was AI-generated.
What it doesn’t touch
Here’s the reassuring part, and it covers most of your shop. This law is about AI-generated people, not AI in general.
Your AI-assisted titles, descriptions, and tags? Fine. That’s text, not a person. AI-cleaned product photos, background swaps, your necklace styled on a plain backdrop? Fine. No person in the frame. Real photos of you, or of a model you actually hired and photographed? Completely fine. That’s a real human. Using AI to help write or sharpen your listing copy isn’t affected either. It’s all words.
The only thing in scope is a fake, AI-made human appearing in your photos or video.
“But I’m not in New York”
Doesn’t matter, and here’s why: your listings show up for buyers in New York. The law follows the audience, not your home address. So the simplest way to think about it is this. If you use AI-generated models, just disclose it everywhere. There’s no clean way to separate your New York shoppers from the rest.
The change to make
If you do use AI-generated model images, the fix takes about a minute. Add a clear, visible note, either in the image itself or in the first line of your description: “Image features an AI-generated model.” The law just asks that it be easy to see, not buried in the fine print.
Say you sell handmade scarves, and you’ve been using an AI tool to show them styled on a model because shooting your own lifestyle photos is hard. Keep doing that if it’s working for you. Just add “This image uses an AI-generated model” to the photo or the top of the description. That’s it. You’re compliant. (There’s a $1,000 fine for ignoring it, but the bar is one honest sentence, so this barely counts as a task.)
Put the label wherever it’s easiest for you to keep consistent. If you’d like it on the image itself rather than in the description, Listadum lets you add a sticker to a listing’s photo, so the “AI-generated” tag sits right on the picture.
One last thought
Beyond the law itself: buyers come to Etsy for handmade, for real, for you. A quick “this image was AI-generated” line isn’t just legal cover. It’s the kind of honesty that’s been earning trust on Etsy long before any law existed. The shops that are upfront about their process tend to be the ones buyers come back to. 🤍
So, nothing to panic about. If you don’t use AI people in your listings, you’re already done. If you do, you’ve got one small sentence to add before June 9.
Do you use AI-generated images anywhere in your shop right now? Might be worth a quick scroll through your listings this week.
Source: New York State Senate Bill S8420-A, nysenate.gov
Want your listings compliant and still optimized?
Listadum scores every listing and shows you exactly what to fix, ranked by impact.
Start free · no credit card · connect your real Etsy shop in minutes
Related: Should You Disclose Mockups and AI Images in Your Etsy Listings?