Etsy Scandal - Collective Lawsuit

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Etsy Class Lawsuit

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Etsy shut down your account for no reason? Join the Collective lawsuit.

If you’re reading this, you probably are in a situation where Etsy shut down your store for no reason or explanation, killing months/years of hard work and dedication. We are in the same situation and have decided to take action against the platform's unfair practices.
You can read the details of our story
. Here is a summary of our Etsy journey:
We are a furniture and home decor business, active since 2018.
We only sell our products (no copyrights or trademarks).
Launched Etsy store in October 2022.
Dedicate 12-14 hours daily with 2 team members for customer support.
Monthly ad spend on Etsy: $600-$1200.
Etsy earned $48K in fees from our $186K sales since launch.
Achieved "Star seller status" in 4 months and maintained it.
Maintained a 5-star rating with over 80 reviews.
No order disputes or customer issues.
Out of nowhere, Etsy suspended our store fifteen months later without explanation.
To them, the process of suspending an account doesn’t mean anything, and I assume that not a single person has looked into it, but on the other side of their “No communication” system with merchants, individuals are pouring their hearts out into achieving the most minor amounts of success on the platform. Individuals who have invested their life savings into growing these accounts hoping to become successful merchants. Individuals are creating dedicated email addresses, Slack channels, Discount codes, and
Youtube channels only for the Etsy platform, all while getting screwed over again and again by their actions. We know that we haven’t done anything wrong, and many reasons could have triggered a “suspension” alert: They might be trying out a new AI tool to automate suspensions, or A competitor might have decided to report our listings. Or maybe they just decided that our products didn’t fit the marketplace anymore?
Regardless, suspending an account and sending an automated message is inhumane and reckless. I would understand if they suddenly decided to become super selective and focus only on specific niche sellers! In this case, they should change their sign-up process and require merchants to go through a robust process of providing information on their business, other online presence, production and supply, etc... But I am guessing this probably isn’t as easy as letting everyone sign up, allowing merchants to put everything they have into growing a store and then dropping them out of nowhere.
I believe in capitalism, and any successful society needs a good balance of capitalist and socialist elements. Another key to a successful society is applying equal common law, a core concept of the US system that allows Etsy to operate. I am usually not the first to suggest regulation for corporations as I believe they work on sound fait principles, to begin with, but Etsy doesn’t, and it’s all too easy for them.
They operate the platform like a reckless authoritarian regime, not talking to merchants or considering their actions; it’s all about “Let’s focus on what will make consumers spend more money on Etsy,” its merchants are just a by-product. I mean, why should they care about them? They have enough sign-ups coming in every day!
Imagine if the US government decided to go around and “suspend” businesses without any reason or explanation: small companies that put their life savings into their operations like hair salons, restaurants, and coffee shops after they had all been paying 20-30% of their revenue to the government. This is precisely what Etsy is doing. It’s criminal and should be regulated.

Can Etsy do this?

Before we get into the legal aspects of Etsy’s actions, let's take a look into Etsy’s relation history with its merchants as well as consider the general “Fairness” of their actions:

What is Etsy?

Etsy is a marketplace for “Handcrafted and Artisan goods.” The service they provide allows merchants to sell on their high-traffic websites. Here are the key points:
Merchants handle everything related to the sale. (Production, Shipping, Fulfillment, etc.)
Etsy collects between 15 to 30% on every sale. (Through several different fees). And in return allow merchants to sell on their platform.
Etsy’s track record or scandals and unfair practices can be found

Collectively against Etsy

Etsy’s “Forced Arbitration”

You might not be aware of it, but Etsy’s terms of use contain a clause stating that merchants agree not to sue or build a case against Etsy, no matter what they do.
More precisely, Users and Etsy agree not to bring claims against each other on a collective basis. But instead, through individual arbitration. And that both agree not to sue each other in court.
This clause only benefits Etsy and puts merchants at an extreme disadvantage. Here is a bullet point of what this means:
Merchants agree not to sue Etsy.
Merchants agree not to hold a case against Etsy as a group.
In other words, Etsy says they can do whatever they want, and you can never sue us.

Why Arbitration?

Mandatory arbitration agreements discourage class actions and make individuals go through arbitration separately. So, if a company screws over a bunch of consumers, it doesn't have to worry about a big lawsuit. Instead, customers have to handle their complaints individually in arbitration, which most of them won't do due to the lack of time and resources.

What now?

Mandatory arbitration is commonly added in terms of service by big tech companies, which they claim is because it's faster and cheaper for both parties; however, the real reason is that they don't care if an individual goes against them as they are prepared for such minor cases, but they are worried about class action lawsuits as they are much harder to win when many people hold the same case, and they are costly to defend. In many cases, especially with big tech companies like Etsy, Courts have often considered the arbitration clauses invalid as they have found them immoral, unfair, and against public policy. Additionally, merchants have no bargaining power, which makes it unfair. In Addition to their forced arbitration clause being potentially invalid for unfairness, other factors can invalidate the clause:

You signed up before July 24th 2023

Etsy added this clause to their terms of use on July 24th. I triple-checked all our emails, and they have not notified us of a change in terms. Even if they did, they should have written the arbitration statement in the subject line with clear instructions on what it meant in the email body. The terms wouldn’t apply to you without adequate notification of the change. If you did receive an email or notification from Etsy, please include this with a screenshot in the form submission.
Etsy SUSPENDED My New Account For No Reason - What To Do?
In this video, I'll spill the tea on why Etsy suspends new accounts for absolutely no reason. Trust me, it's a common issue many sellers face. But don't worry, I've got you covered with tips on how to fix it. Join me as I uncover the mystery behind Etsy's account suspensions and give you practical steps to get back in the game. We'll talk about why they do it and how you can avoid it in the future. No more pulling your hair out! Oh, and guess what? I've attached a script that you can use to contact Etsy when your account gets suspended. Just copy, paste, and let them know you mean business. We'll tackle this together! If you've been through this frustrating ordeal or have any helpful tips, share your thoughts in the comments below. Let's support each other and beat those suspensions! 🎓🎯 Get My Facebook Marketplace + eBay Dropshipping Courses For One Price! → 🎯 Get A Monthly List of AI Prompts & Dropshipping Products 💰Everbee Product Resarch Tool For Etsy → 📦My Dropshipping Supplier Service → ✅ List Of Dropshipping Assistants Looking For Gigs → 🎓 FREE Facebook and eBay Dropshipping Course → 🌎 FREE Facebook Group → 👤 Follow me: Tik Tok - Instagram - Facebook - Below is the script that one of my discord members shared with us in the group. This is not something that I wrote and I shared the source link that the member of my discord got it from. This is the script: For anyone suspended on etsy try emailing them this Dear Etsy Support Team, I am writing to appeal the suspension of my Etsy account. I recently received notification that my account has been suspended, but I was not provided with a clear explanation for the suspension. I understand that Etsy takes the integrity of its marketplace seriously, and I am committed to ensuring that my shop operates within the guidelines set out by Etsy. I have been a seller on Etsy for several years and have always taken great care to provide high-quality products and excellent customer service to my buyers. I have a good reputation on the platform and many satisfied customers. Therefore, the suspension of my account has come as a surprise to me. I respectfully request that you provide me with specific details regarding the reason for the suspension so that I can address any concerns you may have. I assure you that I will take any necessary steps to remedy the situation promptly. If there were any violations, I would be happy to rectify them and prevent them from happening in the future. I am committed to complying with Etsy's policies and guidelines and ensuring that my shop operates within the rules of the marketplace. I kindly request that you reconsider the suspension of my account and allow me to continue selling on Etsy. Thank you for your time and attention to this matter. Sincerely, [Your Name] explain your issue well in the form act confused and explain it out, say you’ve gone over the etsy seller handbook and read through everything, it was for your small business to support your family, small sob story and submit. Then it doesn’t hurt to go on live chat for an extra push from an agent but they will probably tell you to wait on the appeal, id recommend chatting tho #etsy
Etsy Deactivated My Account // why I quit Etsy + what I'm doing instead (BIG ANNOUNCEMENT!!!)
Didn't think I'd ever be making a video on this.. but Etsy decided to deactivate my account, out of the blue, with NO prior email or notification! Something told me to pick up the vlog camera and film, so that's exactly what I did. I wanted to be as transparent as possible with you all & hope you can take away something from today's video. Watch til the end for a very IMPORTANT update & BIG announcement! SAY HELLO 🤎: ☼ website // ☼ instagram // ☼ tik tok // ☼ pinterest // ☼ facebook // // Download my FREE Niche Guide here! // SHOP ALL OF MY AMAZON FAVORITES HERE 🛍️(Cricut blanks, Craft Necessities, YouTube Filming Equipment, etc.) ETSY PHONE # (844)-935-3879 Check out my blog HERE! ☟ WATCH MORE 🎥: ☾ My Etsy Shop is Back!! - ☾ What I Wish I Knew Before Etsy - ☾ How To Launch Craft Business - ☾ Behind The Scenes of Etsy Launch - SAVE $$ 💸: bluehost // Start your blog TODAY with my link! - shopify // Start your FREE trial with Shopify - tubebuddy // Grow your YouTube channel FAST For Business Inquiries ONLY please contact: FTC: This video is NOT sponsored. Some links included in this description are affiliate links, meaning I may receive a small commission from purchases through the links provided. Music by Ryan Little - Practice Patience - Music by frumhere, kevatta - warm feeling - Music by PRGMAT - Lucid Dream - Music by Fiji Blue - I Should've Told You - Please keep in mind that my intention is to teach & help others. All crafts and projects on my channel must be completed at your own risk. I do not take responsibility for any injury that may occur during the making.

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