it's one of those things - you can sell until they tell you not to. Technically, Etsy is for items that are handmade or vintage. The trick is that their vintage is anything more than 20 years old (that is sort of scary!). Many of us have fabric that is old and it would be hard to say it isn't real old. That is how people get around it. If someone complains to Etsy, they will check into it and you can have your site removed. That is the extreme, but it is in the rules. Usually they will just email you that their is a question about a certain item you are selling. Remove it and the inquiry stops. They have really beefed up the dept that checks into things - not so much for the home seller, but to make sure larger companies aren't coming in and reselling stuff.