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Re:Etsy has ousted its CEO and is laying off 8 percent of it... by Joeri on Wednesday May 03, 2017 @09:22AM (#14255391)
This is exactly the same problem as fraudulent goods in any storefront. You solve it via a combination of policy and user flagging.

Etsy should put it in their terms that you're not allowed to resell goods there acquired from somewhere else. Then they can have a user form where people can file a tos violation with link to the original store.

Re:Etsy has ousted its CEO and is laying off 8 percent of it... by code_duck on Wednesday May 03, 2017 @12:01PM (#14256936)
It's a lot more complicated than that.

For one, they've always allowed some goods made by others - vintage, defined as anything 20 years old or more, and craft supplies.

Then, how much does of something has to be made by you? Taking an old suitcase and painting a bird on the side makes it just as 'handmade' as making the entire suitcase from scratch, as far as etsy could figure out.

And then, having user reports is not easy either. People may be wrong, or report their competitors. Or the store may lie about their goods.

Etsy has tried to do this already for years, anyway. They will investigate and ask store owners to send photos of their workspace.