Ehh. I mean, if they were just banning sex toys, I could believe something like that, but doesn’t explain why they’d ban stuff other than sex toys simultaneously:
Etsy is also banning nudity for human models, including “gluteal clefts and female nipples/areolas.” If you’re selling a sexy item of clothing, for example, you must censor body parts, use a mannequin, or opt for just photographing the clothing.
“Sexual language” concerning incest or “referencing familial relationships” will also be banned now. The examples Etsy lists are “Daddy’s slut” and “Choke me Mommy.” As of publication, these terms are still searchable on Etsy, and so is nude content. Searches for “porn” come up blank.