From:
http://4020.net/words/photorights.php#tpa
Commercial Use case study: Virgin Mobile "Are you with us"
In June 2007 Virgin Mobile Australia launched a controversial billboard and internet campaign to tout their SMS-TEXT services. What made it noteworthy was that they illustrated their ads with "creative commons" pictures appropriated from Flickr, without the photographers' knowledge or permission. Moreover a lot of the images also featured clearly identifiable depictions of people (eg. Molly E. Holzschlag or Alison Chang), again without their knowledge or consent.
Despite assertions the photos were used legitimately via Flickr's "creative commons" license, the fact is Virgin never obtained consent from any of the people shown in the ads: the license only applied to the photographer's copyright, not the subject's consent to use their likeness. Thus: (1) the images were used to sell products and services and (2) photo-subject consent was never obtained. Consequently the ads appeared to be in direct contravention of the TPA, and considering the magnitude of the campaign, prompt action could then be expected by the ACCC to injunct and fine the things out of existence.
Or so it would seem, except for one major problem — either by accident or design the people images were not taken in Australia and neither the photographers nor subjects were Australian citizens. Which put them beyond the jurisdictional scope of the TPA or any other Australian legislation! If the photographs were taken here, then the subjects would have a case. If they were taken overseas of Australian citizens, again people would have a legitimate complaint. But foreign persons + foreign photographers + foreign locations?…
Nyet. (Mind you it hasn't stopped Ambulance Chasers from trying.)
Luckily the campaign created such an international stink that Virgin Mobile had to respond. Despite the letter-of-the-law compliance, on July 25th the "areyouwithusorwhat.com" website was reworked and all identifiable images of people were removed. Furthermore, according to the "Adrants" website, Virgin Mobile then cancelled the whole campaign.
So in case you missed it, the moral of this story is: Always Get A Signed Release From Any Person Whose Image You Wish To Use In Advertising!