Etsy has suspended the shop of a Nottingham-based seller, Callum, after he refused to provide a government-issued ID as part of a new identity verification process. The action, taken earlier this month, has left Callum unable to access around £128 in funds held by the platform, significantly impacting his small business, which specializes in enamel pins inspired by anime and Pokémon.
The seller, who operates under the name YukiArtsStudio, claims he was given a deadline to submit his ID and a selfie for biometric verification without prior notice. “I was asked for my biometrics with no prior knowledge and with a countdown timer to induce panic data submission,” Callum explained. As a result, he is unable to sell his products and has continued to fulfill orders at a loss.
Etsy’s identity verification process is managed through a partnership with the third-party company Persona. According to Etsy, biometric data, which includes physical characteristics, is utilized to confirm a seller’s identity. Callum’s account records indicate that his shop is “temporarily holding” £128.33, which he cannot access until he completes the verification.
In an email from Etsy’s customer service, a representative clarified that all sellers must complete identity verification through Persona to comply with legal and regulatory requirements. “If you’re unable to complete the verification through Persona, you unfortunately won’t be able to continue selling on Etsy,” the representative stated.
Callum expressed concerns about the security of his data, particularly after reports emerged last week regarding potential vulnerabilities in Persona’s systems. The company allegedly has “surveillance software” capable of performing numerous checks on users, leading to fears about data misuse. Callum remarked, “Etsy cannot guarantee their third-party partners will protect our data after several breaches of their infrastructure and known data misuse.”
The evolving landscape of online selling platforms has led several sellers, including Callum, to consider transferring their businesses to alternative marketplaces due to stringent identity verification requirements. He highlighted the financial strain that such policies impose on small artists. “For a small artist like myself, that’s a lot of money,” he said.
Privacy advocates have raised alarm over such verification processes, arguing they could compromise individual privacy rights. David Ruiz, a senior privacy advocate at the cybersecurity firm Malwarebytes, commented on the issue, stating, “I understand that Etsy, as a marketplace, must defend against fraud, but I also worry that the price for being online only increases in the future.”
As the situation unfolds, Etsy and Persona have been contacted for comments regarding the verification process and data security measures. The implications of this case highlight the growing tension between online marketplace operations and seller privacy in an era of increasing digital identity verification.
