Testing the Influencer Sponsorship Relationship: Influencer Sues Apparel Company Over Alleged AI-Generated Deepfake Video 

by Ethan Krasnoo and Lucia Mead

Body-positive influencer and content creator Molly Tranchin, known online as “FashionVeggie,” filed a complaint on June 9, 2026, in the U.S. District Court for the Northern District of California against intimate apparel company EBY Inc., alleging that the company used artificial intelligence to alter and distribute an explicit version of her promotional content without her consent that raises important questions about the extent to which companies may modify creator content, the limits of rights granted under influencer agreements, and the legal risks associated with using AI-generated content in advertising and marketing campaigns.[1]

According to the complaint, Tranchin entered into a content creation agreement with EBY, a company that markets intimate apparel and promotes body inclusivity. Pursuant to that agreement, Tranchin created user-generated promotional content featuring EBY products. The complaint alleges that the original footage depicted Tranchin wearing the company’s products in a modest, non-sexual manner that was consistent with her personal brand and online presence.[2]

Tranchin alleges that EBY then subsequently used artificial intelligence tools to materially alter the content, creating what she characterizes as an “embarrassing, explicit” “deepfake” version of the original video. According to the complaint, the altered video exposed portions of her body that were not visible in the original footage and was later published on EBY’s Instagram account without her review, approval, or consent.

Amongst others, the lawsuit asserts claims including breach of contract, copyright infringement, and liability arising from the alleged creation and dissemination of a non-consensual AI-generated deepfake (a violation of California’s nonconsensual deepfake statute). Tranchin contends that EBY exceeded the scope of any rights granted under the parties’ agreement by materially (i.e., significantly) modifying her content and publishing the altered version. She further alleges that the publication of the edited video violated the terms of the parties’ contract, infringed her intellectual property rights, and damaged her reputation as a creator whose platform is built around body positivity, authenticity, and family-friendly content.[3]

As part of the action, Tranchin seeks monetary damages, attorneys’ fees, and injunctive relief requiring EBY to remove and delete all copies of the disputed content.

The case arrives amid growing legal scrutiny of artificial intelligence and its use in advertising, influencer marketing, and digital media. As generative AI technologies become increasingly sophisticated, courts are being asked to address novel questions involving consent, ownership, digital likeness rights, and the limits of permissible content modification.

More broadly, the lawsuit serves as a reminder that contracts granting companies access to an individual’s content, image, or creative work do not necessarily provide unlimited authority to alter or repurpose those materials. Whether in influencer agreements, employment relationships, or other commercial arrangements, contractual rights remain defined by the scope of the parties’ agreement and constrained by intellectual property, privacy, and consent-based protections. As businesses continue to integrate AI-driven tools into their marketing and content strategies, courts will likely play an increasingly important role in determining where authorized use ends and unlawful manipulation begins.

[1] Complaint, Tranchin v. EBY, Inc., No. 3:26-cv-05559 (N.D. Cal. filed June 9, 2026), available at https://www.bloomberglaw.com/public/desktop/document/TranchinvEBYIncDocketNo326cv05559NDCalJun092026CourtDocket?doc_id=X112A6OV78U9H7Q8LATMEK31FFP.

[2] Daniel Seiden, Influencer Sues Underwear Company Over Alleged AI-Generated Deepfake, Bloomberg Law (June 11, 2026), https://news.bloomberglaw.com/california-brief/influencer-sues-underwear-company-empowered-by-you-over-deepfake.

[3] Alexandra Jones, AI Deepfake Claims Drive Suit Against Intimates Brand, Law360 (June 12, 2026), https://www.law360.com.

For more information, please contact RPJ Partner Ethan Krasnoo who counsels clients in areas of complex commercial litigation, arbitration, mediation and dispute resolution, and employment, intellectual property, and entertainment and media. Mr. Krasnoo is admitted to practice law in New York, the United States District Courts for the Southern and Eastern Districts of New York, the United States Court of Appeals for the Second Circuit and United States Tax Court.