Etsy profits from illegal Israeli settlements, new report reveals

Etsy profits from illegal Israeli settlements, new report reveals

Written by NADJA editors

Photo by freepik


Etsy, the online marketplace known for its artisanal and vintage goods, has been profiting from businesses operating in illegal Israeli settlements in the Occupied Palestinian Territories, according to a new report. 

Despite its mission to “keep commerce human,” the briefing reveals that the platform hosts multiple shops located in these settlements, which the International Court of Justice (ICJ) declared illegal in July 2024.

“Western complicity in Israeli war crimes is so pervasive that even Etsy, the popular platform for ‘feel good’ shopping, is connected to businesses in the settlements,” says Claire Provost, the investigative journalist who wrote the report. “So far these ties have gone under-the-radar and unchallenged. That, at least, ends now.” 

Etsy’s links to Israeli settlements exposed

While illegal West Bank settlements and rising settler violence have increased over the years, conscientious consumers may have unknowingly purchased from Etsy shops located here. Despite a previous lack of scrutiny, these issues are now being addressed in the briefing by the international non-profit Institute for Journalism and Social Change (IJSC), released in partnership with UK-based campaigning organisation Global Justice Now and anti-poverty charity War on Want.

Provost, who is also co-director of the IJSC, and research assistant Jerry Richardson have identified at least 44 Etsy shops based in 16 specific settlements deemed illegal by the UN and under international law, including twelve in the occupied West Bank and four in the Israeli-occupied Syrian Golan Heights.

“I first noticed Etsy shops in illegal Israeli settlements while browsing the platform as an ‘off duty’ investigative journalist,” Provost told NADJA. “I noticed shops with locations in towns in ‘Israel’ that I had never heard of. I looked them up and found them, quickly, on lists of illegal settlements including in UN reports. Then I looked on Etsy for other shops in these settlements.”

Among these is Maale Adumim, an Israeli settlement in the West Bank, outside of east Jerusalem. The Israeli government’s controversial plans to expand this illegal site, violently displacing Palestinians, were denounced as a war crime by UN Human Rights Chief Volker Türk in March 2024. According to the report, nine stores are located in Maale Adumim, including an Etsy “star seller” that has had significant sales since opening in 2021, with more than 12,000 transactions by late July 2024.

Etsy benefits financially from these shops by charging fees for listings and transactions. Provost explains that the lack of transparency on the platform, with many other shops listing their location simply as “Israel,” makes it difficult for consumers to determine if they are indirectly supporting illegal settlements.

Etsy, israeli settlements
Source: “Etsy’s business with shops in illegal Israeli settlements”. IJSC report, August 2024

In contrast to the number of Etsy shops stating their location in Israel, the briefing reports that they couldn’t find any listing their location in a major Palestinian city. Also, as per July 2024, they couldn’t find a single Etsy Help Center page that included the word “Palestine” or “Palestinian.”

Money laundering concerns in Ireland

This revelation has significant implications, especially for Irish consumers and authorities. The report highlights that Etsy’s contracts with shops outside the Americas are with its subsidiary Etsy Ireland UC, where there is strict anti-money laundering legislation. If proceeds from illegal settlement businesses are being brought into the Irish financial system, the report says, it could leave the company exposed to claims it is in violation of these laws.

Calls have been growing in Ireland to sever business ties with companies linked to illegal settlements, and Etsy’s involvement could lead to legal scrutiny. 

The Irish political party Sinn Féin has proposed the Illegal Israeli Settlements Divestment Bill 2023, which would compel the Ireland Strategic Investment Fund (ISIF) to not invest directly or indirectly in companies listed in the UN database as doing business in illegal settlements in the Palestinian territories. 

Global Legal Action Network (GLAN), the Ireland Palestine Alliance Sadaka, and Palestine human rights NGO Al-Haq have recently launched a first-of-its-kind complaint in Ireland, arguing that the country’s Criminal Assets Bureau should seize any revenue generated for Ireland from illegal settlements under the Proceeds of Crime Act.

Dr Gearóid Ó Cuinn, an Irish human rights lawyer and director of GLAN, told the IJSC: “The Irish government ought to take action to ensure that businesses operating in Ireland are not contributing to Israel’s occupation of Palestine. The ICJ was clear — all countries, including Ireland, are legally obliged ‘not to render aid or assistance in maintaining’ this unlawful situation. 

“A company that enables businesses in illegal settlements significantly risks violating not only international standards but also Irish law, including the anti-money laundering legislation. We will be following this matter closely.”

Etsy’s ethical integrity faces scrutiny

Etsy’s current policies allow it to remove sellers violating its terms, yet the platform has yet to address these specific issues. 

The IJSC reached out to Etsy and shared details of these shops including screenshots showing their explicit naming of locations in places considered illegal settlements by the UN and under international law, as well as screenshots of shops on its platform that only identify their location as “Israel” without naming a specific city or town.

In response Etsy said that they have shared the information to their relevant teams for review and reiterated their compliance with the law. They said: “Please note that Etsy strives to comply with applicable laws, including relevant anti-money laundering and sanctions laws, and we take those very seriously. We regularly screen our sellers against sanctions watchlists to ensure sanctioned individuals and entities are not able to sell on Etsy, and we constantly monitor for changes in applicable rules and take appropriate actions.”

The IJSC’s briefing suggests that Etsy could take proactive steps, such as requiring clearer location disclosures from sellers and severing ties with those in illegal settlements. These measures could demonstrate a commitment to ethical commerce and support for consumers who wish to make responsible purchasing decisions, the report says.

“We will be following up with Etsy to find out what actions they might take after their internal review of the information we compiled and shared with them,” Provost says. “We are also working with partners, and looking for other partners to join us, to do the follow-up this requires.”


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