Citron says Etsy ‘hit a new low,’ ‘encouraging’ counterfeiting on platform

Citron Research, known for its short selling ideas, has published a critical report on Etsy, stating in part: "Etsy has hit a new low as a public company. We believe management has knowingly or, at the very least, negligently, turned this company into the largest organized clearing house for counterfeit goods in the world while not only allowing the behavior but encouraging it and promoting it by selling placement and status to the millions of sites that regularly violate copyright laws. Citron believes Etsy is walking on eggshells with the FTC, DOJ, SEC, Customs and Border Protection, and the multitude of brands whose trademarks are being stolen and exploited daily… News of Etsy’s site being a shill for counterfeiters is no recent revelation, but now as Citron will illustrate it has hit ridiculous levels. Most importantly, it is obvious that management has not done enough to control this problem, which calls into question that quality of reporting of all internal metrics and the viability of its revenue base. Etsy has become a company whose corporate culture on transparency and reporting should be challenged." Etsy shares are down nearly 5% to $135.89 in afternoon trading following the report. Reference Link