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gadgets: Tunic publisher claims TikTok ran 'racist, sexist' AI ads

Indie game publisher Finji accuses TikTok of using generative AI to create "racist, sexualized" ads for its games without permission, despite Finji disabling AI features. One ad for 'Usual June' reportedly depicted a character drastically altered from its original design. TikTok initially denied, then acknowledged the issue, citing an unselected "catalog ads format." Finji's CEO expressed disappointment over TikTok's unresolved response and potential brand harm.

PublishedFebruary 21, 2026
Reading Time5 min
gadgets: Tunic publisher claims TikTok ran 'racist, sexist' AI ads

Tunic publisher claims TikTok ran 'racist, sexist' AI ads for one of its games without its knowledge

Indie game publisher and developer Finji has accused TikTok of unauthorized use of generative AI to alter advertising campaigns for its games, including one that allegedly produced a "racist, sexualized" depiction of a character from its title 'Usual June'. Finji, known for popular indie games like 'Tunic' and 'Night in the Woods', stated that these AI-modified ads appeared on the platform despite the company explicitly disabling all AI optimization features.

Key takeaways

  • Finji, publisher of 'Tunic', accuses TikTok of unauthorized generative AI use in ads.
  • One ad for 'Usual June' allegedly showed a "racist, sexualized" AI-modified character.
  • Finji claims all AI ad optimization features were explicitly disabled on their account.
  • TikTok initially denied but later acknowledged the issue, citing a "catalog ads format."
  • Finji CEO Rebekah Saltsman expressed deep disappointment with TikTok's unresolved response.

What happened

Finji first became aware of the altered advertisements after being alerted by followers of its official TikTok account. According to IGN, one specific ad for Finji's game 'Usual June' was reportedly modified to display a character with "a bikini bottom, impossibly large hips and thighs, and boots that rise up over her knees."

This depiction drastically differs from the character's official in-game appearance, leading Finji to label it as a "racist, sexualized" misrepresentation. Finji CEO and co-founder Rebekah Saltsman initiated an investigation with TikTok upon receiving screenshots of the problematic ads from fans.

Finji confirmed that despite advertising on TikTok, all AI features on its account, including "Smart Creative" and "Automate Creative," were expressly turned off. This fact was later confirmed by a TikTok agent regarding the ad in question.

Why it matters

This incident raises significant concerns for advertisers regarding platform control and the ethical deployment of generative AI in marketing. For Finji, the unauthorized alteration of its game characters into "racist, sexualized" forms represents a direct threat to its brand reputation and potential commercial harm.

It underscores a broader issue where game developers and publishers could lose control over their intellectual property and brand image when advertising on major digital platforms. Furthermore, it highlights questions about the transparency and default settings of powerful AI tools within ad platforms, creating potential for harm without advertiser consent.

Key details / context

Finji publishes well-regarded indie titles such as 'Night in the Woods' and 'Tunic'. The offending AI-modified ads reportedly appeared as slideshows on TikTok, seemingly originating directly from Finji's campaigns.

Initially, TikTok responded to Finji's complaints by stating it found no evidence of "AI-generated assets or slideshow formats being used." This was despite Finji providing clear screenshot evidence of the altered image. In subsequent exchanges, TikTok acknowledged the evidence, assuring Finji it was "no longer disputing whether this occurred" and had escalated the issue internally.

TikTok's ad platform includes features like "Smart Creative," which uses generative AI to create multiple ad versions, and "Automate Creative," designed to optimize visual and audio elements. Finji had demonstrably disabled both of these options.

TikTok eventually offered an explanation, suggesting Finji's campaign utilized a "catalog ads format" designed to help advertisers combine carousel and video assets for "better results." Finji reportedly opted into this format without realizing its implications for AI usage. TikTok ultimately admitted to Saltsman that the ad "raises significant issues, including the unauthorized use of AI, the sexualization and misrepresentation of your characters, and the resulting commercial and reputational harm to your studio."

However, at the time of IGN's report, communication between Finji and TikTok remained unresolved, and TikTok declined to provide further comment to IGN.

What happens next

As of the reporting, the communication between Finji and TikTok had not reached a resolution. Finji's CEO, Rebekah Saltsman, expressed her shock at TikTok's "complete lack of appropriate response to the mess they made."

She stated an expectation for both an apology and clear assurances that such an issue would not recur, though she was "obviously not holding my breath for any of the above." TikTok informed Saltsman that the issue could not be escalated any higher internally. The specific outcomes of TikTok's internal investigation and any potential policy changes or reparations for Finji remain unaddressed in the available information.

FAQ

Q: What is Finji? A: Finji is an independent publisher and developer recognized for publishing critically acclaimed indie games like 'Tunic' and 'Night in the Woods'.

Q: What is "Smart Creative" on TikTok's ad platform? A: "Smart Creative" is an AI-powered option on TikTok's ad platform that automatically modifies user-created ads to generate multiple versions, aiming to optimize performance based on audience response.

Q: Has the dispute between Finji and TikTok been resolved? A: No, at the time the original report was published, the communication between Finji and TikTok regarding the unauthorized AI-generated ads was unresolved. TikTok also stated the issue could not be escalated further internally.

#TikTok AI Ads#Generative AI#Finji Games#Game Advertising#Usual June#Publisher DisputeMore

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