This is shitty by Etsy. However, AFAIK it is well within their rights. When you use a service like this, you are essentially paying someone else to manage part

This is shitty by Etsy. However, AFAIK it is well within their rights. When you use a service like this, you are essentially paying someone else to manage parts of your business - the convenience/risk trade-off here happened to come out against this particular person.