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

Source: Engadget

Background

Indie publisher and developer Finji has accused TikTok of using generative AI to alter ads for its games on the platform without its knowledge or permission. Finji, which published indie darlings like Night in the Woods and Tunic, said it only became aware of the seemingly modified ads after followers of its official TikTok account alerted it.

Allegations

As reported by IGN, Finji alleges that one ad on the platform was modified to display a “racist, sexualized” representation of a character from one of its games.

Finji does advertise on TikTok, but it told IGN that it has AI “turned all the way off.” After CEO and co‑founder Rebekah Saltsman received screenshots of the ads from fans, she approached TikTok for an investigation.

A number of Finji ads have appeared on TikTok, including:

• Montages of the company’s games.
• Game‑specific ads such as this one for Usual June.

According to IGN, the offending AI‑modified ads (posted as if they were coming directly from Finji) appeared as slideshows. One example depicted Usual June’s titular protagonist with “a bikini bottom, impossibly large hips and thighs, and boots that rise up over her knees,” a portrayal that does not match the character in the game.

TikTok’s Response

IGN printed several of TikTok’s replies to Finji’s complaints:

• Initial reply: TikTok said it could find no evidence that “AI‑generated assets or slideshow formats are being used,” despite Finji providing a screenshot of the clearly edited image.
• Later reply: TikTok appeared to acknowledge the evidence and stated it was “no longer disputing whether this occurred.” The platform added that it had escalated the issue internally and was investigating it thoroughly.

TikTok Ad Features

• Smart Creative: Uses generative AI to modify user‑created ads, generating multiple versions and promoting the ones that receive the best audience response.
• Automate Creative: Uses AI to automatically optimize music, audio effects, and visual quality to “enhance the user’s viewing experience.”

Saltsman showed IGN evidence that Finji had both of these options turned off, a fact also confirmed by a TikTok agent for the ad in question.

Outcome

After a series of increasingly frustrated exchanges, TikTok eventually 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.”

TikTok explained that Finji’s campaign used a “catalog ads format” designed to demonstrate the performance benefits of combining carousel and video assets in sales campaigns. The platform claimed the initiative helped advertisers “achieve better results with less effort,” but it did not directly address the harmful content. Finji apparently opted into this ad format without realizing it had done so. TikTok declined further comment when approached by IGN.

Saltsman was told the issue could not be escalated any higher, and communication remained unresolved at the time of IGN’s report. In a statement to the outlet, she said she was “a bit shocked by TikTok’s complete lack of appropriate response to the mess they made.” She added that she expected both an apology and clear reassurance that a similar issue would not recur, but she was “obviously not holding my breath for any of the above.”