I agree flagging works, I've just read over and over that Etsy will not do anything about copyright unless the owner contacts them since the seller could actually have permission to use the picture. Which happened a while back. There was a shop that we were all discussing and Michelle said that her sister had given the seller permission to use the pictures
. Maybe you could flag on the fact that the item pictured is not made by the seller, that might work. I was thinking copyright when I originally read the thread. Go ahead and flag away!