Etsy accused of withholding payments from sellers

Online marketplace Etsy has faced criticism from its sellers after implementing a "reserve system" that withholds 75 percent of their earnings for 45 days. Hundreds of small businesses received an email from Etsy regarding this new policy, leading to significant financial difficulties for sellers who rely on the funds for materials and daily expenses, said a report by the BBC. The reserve system is intended to safeguard the marketplace and cover potential refunds, but sellers are expressing frustration and confusion as to why their money is being held. Some sellers reported having two consecutive reserve periods imposed on them.