Why do Etsy shops selling copyrighted fan art still get Star Seller badges?

Hi! Star Seller and IP enforcement are basically two separate lanes on Etsy: Star Seller is awarded from customer-service metrics (message response, on-time shipping/tracking, and review ratings), so a shop can hit those numbers and earn/keep the badge even if some of their listings look like fan art or trademark/copyright infringement. Etsy usually acts on IP issues when a rights owner (or their authorized agent) files a formal report, not just because a listing “looks infringing” to other sellers—so some shops fly under the radar until the brand actually reports them.

A few things that explain what you’re seeing:

• Star Seller doesn’t “vet” content. It’s not a compliance certification; it’s a performance badge based on recent order/messaging history.
• IP takedowns are often notice-based. For copyright/trademark issues, Etsy generally needs a valid report from the IP owner/authorized rep to remove listings under their IP process.
• Badges can lag behind enforcement. Star Seller is calculated on a rolling window and awarded on a schedule, so a shop may still display the badge even if a listing gets removed later (or until the next evaluation cycle).

What you should do when you see a Star Seller listing that looks infringing

If it’s infringing on a big brand (Disney, Nintendo, etc.) but not your work:
You typically can’t file an IP report unless you’re the rights holder or authorized to act for them. The most practical move is to ignore it and keep your shop clean, because getting involved can waste time and sometimes backfire if you make accusations you can’t substantiate.

If it’s infringing on your original art/designs (they copied you):

• File a report through Etsy’s IP reporting process as the copyright owner (this is the correct path for stolen artwork).
• Document your authorship for your own records (dated sketches, source files, uploads, order of publication). You usually don’t need to send Etsy all of this upfront, but it’s helpful to have.

If it violates Etsy rules in a non-IP way (for example, prohibited items):
You can use Etsy’s normal listing/report options for policy issues—but that won’t replace an IP takedown process for trademarks/copyright.

If you tell me whether the issue you’re seeing is (1) fan art of famous characters or (2) someone copying your specific designs, I can point you to the safest next step for that situation and what wording/details to prepare.