Unless they are working out of an approved kitchen. But to go through all of the expense to sell on etsy wouldn't be profitable. It's barely profitable in a retail establishment.
The internet is fairly new with all of these sales. But just like the crackdown on music and now copyright/trademark protection, it won't be long before this area is tackled. Plus it would be a great revenue source. The fines for FDA go back per diem for as long as you would not have the required paperwork on file. I think some things like production schedules and recall protocol information must be held for six months.
I've written about this many times. My kitchen was built to FDA specs, but unless I get a lot bigger, the cost is prohibitive in that local sales don't have to jump through hoops. You must have every recipe analyzed and that is a minimum of $125 per recipe.
This all started after 9/11 when mail and delivery were used by terrorists. Every FDA kitchen must also register with the Bioterrorism Act.
Little by little, the agencies are working to enforce the laws now being voilated online.
I was a witness in a tax fraud lawsiut several years ago and I know that when a government agency comes in on a voilation, they alert the IRS and they also look into the violating business for tax fraud.
