Why YSK: You should know that you can protect yourself as a buyer or a seller as anyone who uses Etsy. It’s a very popular sales platform and they’re making some changes to prevent class action lawsuits against any shenanigans they might pull against buyers and sellers on the platform. You have the ability to opt out of this to protect yourself; the linked article explains how to do this.
I agree, it’s sketchy and unfair practice to include those lines. I’m thinking they either had an issue in the past like you said, or whatever legal team works for them decided that was something they could get away with to aggressively protect the business.