Case Studies: Etsy

Etsy: In early 2011, online marketplace Etsy suffered a “social media DIY-saster” after a change to the site made shoppers’ feedback posts, purchases, and in some cases real names publicly visible and searchable. The company was particularly criticized for announcing the change only on a forum rarely used by buyers and for refusing to take its users’ privacy concerns seriously before the media drew attention to the issue, leading to an incident described as “Etsy’s privacy Valdez.” Although the online marketplace has since changed its default privacy settings and apologized for its behavior, it has acknowledged that it will have to “work hard to regain your trust;” for many users, however, this may have been the “last straw.”