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Etsy, the global online marketplace used by millions, is facing claims from sellers it has been withholding thousands of pounds from small businesses by imposing reserves on accounts that take 75% of sellers’ income for 45 days with no warning.

Sellers say the company is retaining their income with little care for how it will affect families in a cost of living crisis.

Pietra (her surname is not used for fear Etsy will shut her account), a Miami-based Etsy seller, told Sky News she has more than $20,000 (£15,463) held in two of her accounts in an enforced reserve that she is unable to access.

Dan Vass from Aylesbury runs a furniture business through Etsy which was going from strength to strength until a reserve was imposed on his account on June 14 without any warning. "We currently have over £5,000 in reserve and it just seems to keep growing. We haven't been able to pay bills and this is our only source of income," he said.
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Dan Vass from Aylesbury runs a furniture business through Etsy

Since 2015 she has designed wedding favours to sell on the platform full-time, balancing work with being a single mum.

Her business was taking in more than $30,000 (£23,195) per month in orders. From that total, once production and shipping costs are removed, she is left with $8,000 (£6,185) profit.

But after a reserve was placed on her account on May 18, she saw her income drop to just $444 (£343) in June.

“It’s insane that in a two-month period my whole life went to hell because of this,” she said. “They’re holding $20,000 (£15,000) of mine, and I basically can’t buy food.

“I’ve just reached two months of my rent being late and I’ve maxed out two credit cards, one for $5,000 (£3,800) the other for $6,000 (£4,600). It’s been close to impossible to get out of bed.”

Dan Vass from Aylesbury runs a furniture business through Etsy which was going from strength to strength until a reserve was imposed on his account on June 14 without any warning.
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Mr Vass says his business was going from strength to strength until a reserve was imposed on his account

‘We haven’t been able to pay bills’

Dan Vass, from Aylesbury in Buckinghamshire, runs a furniture business through Etsy which was going from strength to strength until a reserve was imposed on his account on June 14 without any warning.

“We currently have over £5,000 in reserve and it just seems to keep growing. We haven’t been able to pay bills and this is our only source of income.

“There have been times this month when we literally do not know how we can keep the business going and our family fed because the items take a long time to make, have high material costs and Etsy are holding all of our funds, so we can’t actually begin to make them when orders come in.”

Dan Vass from Aylesbury runs a furniture business through Etsy which was going from strength to strength until a reserve was imposed on his account on June 14 without any warning. "We currently have over £5,000 in reserve and it just seems to keep growing. We haven't been able to pay bills and this is our only source of income," he said.
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Mr Vass says he has around £5,000 in reserve with Etsy

‘I’ve had to retrain’

Anthony Whitworth, from Tadcaster in North Yorkshire, owns Etsy shop The Bizzy Box and is ranked in the UK’s top three Etsy sellers.

He’s been running a thriving business for seven years through the online marketplace which has enabled him to make a good living whilst supporting his wife who has Multiple Sclerosis.

His business pays Etsy over £35,000 in fees per year and has a 5-star rating from more than 63,500 sales, but since May his account has been put into reserve swallowing his income.

“I’ve had to retrain as a locksmith just to make enough money to keep things ticking over since May and in case Etsy goes seriously downhill in the long run.”

‘Quite shocking’

The Small Business Commissioner Liz Barclay told Sky News that over the past few months she has received a rising number of complaints from small business owners that online platforms are holding their money in reserves for a longer period of time than they previously did.

“Up until now, we have been hearing of online platforms withholding smaller amounts of money. This is the first time I’ve heard 75% being withheld in reserves and that is quite shocking.”

Dan Vass from Aylesbury runs a furniture business through Etsy which was going from strength to strength until a reserve was imposed on his account on June 14 without any warning.
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Etsy has a “purchase protection programme” which enables a customer to easily apply for a refund

“These small suppliers are the lifeblood and the talent that drives your business success. They need to be paid as quickly as possible or they may go to the wall.”

Ms Barclay said the government has no jurisdiction over online selling platforms such as Etsy, which are not UK companies.

She said the government is reviewing the tools it has to help small businesses get paid faster with a report expected to be published in Autumn.

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Amazon to cut 9,000 jobs in its cloud services
Thousands of small businesses face ‘tough decisions’

An Etsy spokesperson said: “Etsy Purchase Protection is designed to protect both buyers and sellers as Etsy covers the cost of refunds for all eligible orders; since launching last year, we have received positive feedback around this program.

“And while we understand that payment reserves can cause short-term disruptions to a seller’s payment schedule, these temporary holds are common practice across marketplaces.”

‘I’m worried I’ll lose lots of sales’

Sky News understands Etsy began using payment reserves in 2021.

Reserves are not uncommon amongst seller platforms.

Sellers who have been on Amazon for over a year and have processed at least 100 orders will have 3% of their daily payments held in a reserve for the purpose of covering transaction disputes.

In comparison, Etsy sellers have shown evidence to Sky News that whilst in a “reserve”, 75% of the amount they receive from orders is unavailable to them for 45 days or until they have provided tracking proof.

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This means the money needed to pay for the product and ship it out is not received until after it is made and shipped.

A lot of sellers don’t want to force their customers to pay for tracked shipping because international tracking can rack up a huge cost.

Steen Ross, from Norwich, has £1,800 held in a reserve on her Etsy account.

She has sold custom costumes to a largely American customer base on Etsy for a decade and relies on her Etsy income to pay rent.

“Most of my sales go to America and about 90% of people don’t want to pay the additional cost of tracking because it’s so expensive, they are happy for me to just provide proof of postage.

“I’m worried that if I raise prices to include tracking, I’ll lose a lot of sales, but if I don’t Etsy won’t release funds from my reserve before 45 days.”

Etsy’s purchase protection programme

In June 2022, Etsy introduced a new “purchase protection programme” which enables a customer to easily apply for a refund if they claim their item is lost or stolen.

Since then, Pietra, Steen Ross and Dan Vass claim they have experienced no-challenge refunds, where funds appear to automatically leave their reserve when a claim is made.

These complaints have been echoed by hundreds of people online tweeting Etsy’s CEO John Silverman and a Facebook group ‘Etsy Reserve Strike’ has been set up in the last month to organise a strike amongst sellers.

Etsy has almost 90 million buyers worldwide and about 6 million sellers but last year, for the first time since 2012, Etsy experienced a fall in its number of users and sellers.

Mr Silverman has dropped $24.4m (£18.7m) of his shares in the company since the beginning of February.

As of 10 July, Etsy’s share price sat at $85.83 (£65.56) compared to the all-time high share price of $297 in 2021.

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Care whistleblower ‘who saw elderly resident being punched’ could face removal from Britain

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Care whistleblower 'who saw elderly resident being punched' could face removal from Britain

A care worker who reported the alleged abuse of an elderly care home resident, which triggered a criminal investigation, is facing destitution and potential removal from Britain after speaking up.

“Meera”, whose name we have changed to protect her identity, said she witnessed an elderly male resident being punched several times in the back by a carer at the home where she worked.

Sky News is unable to name the care home for legal reasons because of the ongoing police investigation.

“I was [a] whistleblower there,” said Meera, who came to the UK from India last year to work at the home.

“Instead of addressing things, they fired me… I told them everything and they made me feel like I am criminal. I am not criminal, I am saving lives,” she added.

Meera
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‘Meera’ spoke up about abuse she said she witnessed in the care home where she worked

Like thousands of foreign care workers, Meera’s employer sponsored her visa. Unless she can find another sponsor, she now faces the prospect of removal from the country.

“I am in trouble right now and no one is trying to help me,” she said.

More on Migrant Crisis

Meera said she reported the alleged abuse to her bosses, but was called to a meeting with a manager and told to “change your statement, otherwise we will dismiss you”.

She refused. The following month, she was sacked.

The care home claimed she failed to perform to the required standard in the job.

She went to the police to report the alleged abuse and since then, a number of people from the care home have been arrested. They remain under investigation.

‘Migrants recruited because many are too afraid to speak out’

The home has capacity for over 60 residents. It is unclear if the care home residents or their relatives know about the police investigation or claim of physical abuse.

Since the arrests, the regulator, the Care Quality Commission (CQC), carried out an investigation at the home triggered by the concerns – but the home retained its ‘good’ rating.

Meera has had no reassurance from the authorities that she will be allowed to remain in Britain.

In order to stay, she’ll need to find another care home to sponsor her which she believes will be impossible without references from her previous employer.

She warned families: “I just want to know people in care homes like these… your person, your father, your parents, is not safe.”

She claimed some care homes have preferred to recruit migrants because many are too afraid to speak out.

“You hire local staff, they know the legal rights,” she said. “They can complain, they can work anywhere… they can raise [their] voice,” she said.

Becky Johnson
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Sky’s Becky Johnson spoke to ‘Meera’

Sky News has reported widespread exploitation of care visas and migrant care workers.

Read more:
More than 100 migrants face being in UK illegally
Immigration crackdown will fuel ‘exodus’ of nurses
New English language and UK citizenship requirements for migrants

Currently migrants make up around a third of the adult social care workforce, with the majority here on visas that are sponsored by their employers.

As part of measures announced in April in the government’s immigration white paper, the care visa route will be closed, meaning care homes will no longer be able to recruit abroad.

‘Whole system is based on power imbalance’

But the chief executive of the Work Rights Centre, a charity that helps migrants with employment issues, is warning that little will change for the tens of thousands of foreign care workers already here.

“The whole system is based on power imbalance and the government announcement doesn’t change that,” Dr Dora-Olivia Vicol told Sky News.

She linked the conditions for workers to poor care for residents.

Dr Dora
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Work Rights Centre CEO Dr Dora-Olivia Vicol

“I think the power that employers have over migrant workers’ visas really makes a terrible contribution to the quality of care,” she said.

Imran agrees. He came to the UK from Bangladesh, sponsored by a care company unrelated to the one Meera worked for. He says he frequently had to work 14-hour shifts with no break because there weren’t enough staff. He too believes vulnerable people are being put at risk by the working conditions of their carers.

Migrant workers ‘threatened’ over visas

“For four clients, there is [a] minimum requirement for two or three staff. I was doing [it] alone,” he said, in broken English.

“When I try to speak, they just directly threaten me about my visa,” he said.

“I knew two or three of my colleagues, they are facing the same issue like me. But they’re still afraid to speak up because of the visa.”

Meera

A government spokesperson called what happened to Imran and Meera “shocking”.

“No one should go to work in fear of their employer, and all employees have a right to speak up if they witness poor practice and care.”

James Bullion, from the CQC, told Sky News it acts on intelligence passed to it to ensure people stay safe in care settings.

Additional research by Leah Adin

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Donald Trump may be denied privilege of addressing parliament on UK state visit

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Donald Trump may be denied privilege of addressing parliament on UK state visit

Donald Trump may be denied the honour of addressing parliament on his state visit to the UK later this year, with no formal request yet submitted for him to be given that privilege.

It comes after President Macron’s successful state visit this week, in which he was invited to speak in front of both Houses of Parliament.

Sky News has been told the Speaker of the House of Commons, Sir Lindsay Hoyle, hasn’t so far received a request to invite the US president to speak in parliament when he is expected to visit in September.

It was confirmed to MPs who have raised concerns about the US president being allowed to address both houses.

Kate Osborne, Labour MP for Jarrow and Gateshead East, wrote to the speaker in April asking him to stop Mr Trump from addressing parliament, and tabled an early-day motion outlining her concerns.

“I was happy to see Macron here but feel very differently about Trump,” she said.

“Trump has made some very uncomfortable and worrying comments around the UK government, democracy, the Middle East, particularly around equalities and, of course, Ukraine.

“So, I think there are many reasons why, when we’re looking at a state visit, we should be looking at why they’re being afforded that privilege. Because, of course, it is a privilege for somebody to come and address both of the houses.”

But the timing of the visit may mean that any diplomatic sensitivities, or perceptions of a snub, could be avoided.

Macron addressing Parliament
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France’s President Emmanuel Macron addressed parliament during his state visit this month

Lord Ricketts, a former UK ambassador to France, pointed out that parliament isn’t sitting for much of September, and that could help resolve the issue.

In 2017, he wrote a public letter questioning the decision to give Donald Trump his first state visit, saying it put Queen Elizabeth II in a “very difficult position”.

Parliament rises from 16 September until 13 October due to party conferences.

The dates for the state visit haven’t yet been confirmed by Buckingham Palace or the government.

However, they have not denied that it will take place in September, after Mr Trump appeared to confirm they were planning to hold the state visit that month. The palace confirmed this week that the formal planning for his arrival had begun.

With the King likely to still be in Scotland in early September for events such as the Braemar Gathering, and the anniversary of his accession and the death of Queen Elizabeth on the 8th September, it may be expected that the visit would take place sometime from mid to the end of September, also taking into consideration the dates of the Labour Party conference starting on the 28th September and possibly the Lib Dem’s conference from the 20th-23rd.

Donald Trump. Pic: Reuters
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Mr Trump has said he believes the trip to the UK will take place in September. Pic: Reuters

When asked about parliamentary recess potentially solving the issue, Ms Osborne said: “It may be a way of dealing with it in a very diplomatic way… I don’t know how much control we have over Trump’s diary.

“But if we can manoeuvre it in a way that means that the House isn’t sitting, then that seems like a good solution, maybe not perfect, because I’d actually like him to know that he’s not welcome.”

A message from the speaker’s office, seen by Sky News, says: “Formal addresses to both Houses of Parliament are not automatically included in the itinerary of such a state visit.

“Whether a foreign head of state addresses parliament, during a state visit or otherwise, is part of the planning decisions.”

The King and Mr Trump raising a toast in 2019. Pic: Reuters
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Mr Trump made his first state visit to the UK in June 2019 during his first presidency. File pic: Reuters

It’s understood that if the government agrees to a joint address to parliament, the Lord Chamberlain’s office writes to the two speakers, on behalf of the King, to ask them to host this.

It will be Mr Trump’s second state visit.

During his first, in 2019, he didn’t address parliament, despite the fact that his predecessor, Barack Obama, was asked to do so.

It was unclear if this was due to the fact John Bercow, the speaker at the time, made it clear he wasn’t welcome to do so.

However, it didn’t appear to dampen Mr Trump’s excitement about his time with the Royal Family.

Read more from Sky News:
Two women killed as BMW crashes into care home
Officers who confronted Southport killer win bravery award

Speaking earlier this year, he described his state visit as “a fest” adding “it’s an honour… I’m a friend of Charles, I have great respect for King Charles and the family, William; we have really just a great respect for the family. And I think they’re setting a date for September.”

It is expected that, like Mr Macron, the pageantry for his trip this time will revolve around Windsor, with refurbishment taking place at Buckingham Palace.

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Liverpool retires number 20 shirt at all levels in honour of Diogo Jota

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Liverpool retires number 20 shirt at all levels in honour of Diogo Jota

Liverpool have retired the number 20 shirt in honour of Diogo Jota – the first time it has made such a gesture.

The club said it was a “unique tribute to a uniquely wonderful person” and the decision was made in consultation with his wife and family.

The number 20 will be retired at all levels, including the men’s and women’s first teams and academy squads.

A statement said: “It was the number he wore with pride and distinction, leading us to countless victories in the process – and Diogo Jota will forever be Liverpool Football Club’s number 20.”

The club called it a “recognition of not only the immeasurable contribution our lad from Portugal made to the Reds’ on-pitch successes over the last five years, but also the profound personal impact he had on his teammates, colleagues and supporters and the everlasting connections he built with them”.

Jota's wife joined Liverpool players to view tributes at Anfield on Friday. Pic: Liverpool FC
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Jota’s wife joined Liverpool players to view tributes at Anfield on Friday. Pic: Liverpool FC

Pic: Liverpool FC
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Pic: Liverpool FC

Newly-married Jota died alongside his brother when his Lamborghini crashed in northern Spain on 3 July.

Police said this week that all the evidence so far suggests Jota was the one driving the vehicle.

Liverpool teammates joined members of Jota’s family, including his wife Rute, at a huge memorial site outside Anfield on Friday.

Read more from Sky News:
Mystery in space is most likely ‘oldest comet ever seen’
Trump may be denied privilege of addressing parliament

A fan looks at messages written onto a memorial wall created near Anfield Stadium. Pic: Reuters
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A fan looks at messages on a memorial wall near Anfield. Pic: Reuters


Liverpool's captain Virgil van Dijk and Liverpool's player Andrew Robertson arrive on the day of the funeral ceremony of Liverpool's Portug
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Virgil van Dijk and Andy Robertson were among players at the funeral. Pic: Reuters

The star’s funeral took place last weekend, with Liverpool colleagues and members of the Portuguese national team in attendance.

Reds captain Virgil van Dijk carried a shirt bearing the number 20 made from flowers.

Liverpool players returned to the club’s training ground for the start of pre-season on Tuesday.

Their first game since Jota’s death will be on Sunday when they play a friendly away against Preston North End.

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