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Bans like these are usual signs of some hardcore right wing extremists at the helm.
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More often it's not the company itself, it's the payment providers. There's a LOT of hardcore rightwingers in that business, and they've made it their mission to strongarm every online business dependent on their services into banning anything they consider obscene.
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Your choices are basically to comply with everything they tell you or be forced to use fly-by-night payment providers that are as just as likely to disappear with your money as complete a transaction. It's a de-facto monopoly run entirely by people with a very nasty agenda.
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Etsy has it's own payment system now though I expect there must be some time in with the credit cards. Most ppl are pushed into using EtsyPayments. It's pissed ppl off, customers and sellers alike for a while
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Though also many companies are quietly conservative, or hire conservatives because the feeder pipelines for managerial "talent" are controlled by conservatives. They claim arm-twisting because they were taught well to shift blame for unpopular things whenever possible.
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I left Etsy so I am not sure who is running the show but it had changed so much from when I started it wasn't recognizable.