Panic as Etsy Falsely Tells Sellers It Suspended Their Shops

Sellers panicked when they logged into their Etsy account on Thursday morning and saw a red banner informing them their account was suspended.

Sellers said Etsy displayed the following message on their dashboards:

Unfortunately your shop has been suspended since your bank wasn't verified.

It looks like you weren't able to confirm the small deposit we sent within 60 days of receiving our first request, so you can't receive new orders right now. Want to sell on Etsy again? Verify your bank account - this helps us keep our community safe, reduce fraud, and meet legal requirements."

Sellers began reporting the problem on Etsy discussion board threads as early as 5:40 am, and given the amount of reports, it's possible the issue affected all sellers.

At 7:03 am, an Etsy moderator responded to one of the threads with the following message:

"Hi folks, we appreciate your reports here! We're investigating and will have updates soon. In the meantime, you do not need to take any action but please keep an eye on the Technical Issues section for updates shortly. Closing this up now. Thank you!"

Nevertheless, sellers continued to create and comment on new threads throughout the morning. 

We were unable to find any proactive announcement warning sellers that the shop suspension message was caused by a glitch, and as of 9:30 am, the Etsy Status board shows no issues with the site.

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