Mr Smith's face was being used in false advertising on Facebook a couple of months ago. I can't recall what they were flogging in the ad but it was obviously a bit suss and fortunately Facebook pulled the ad within a week.
I use AdBlock and don't see ads however some web sites have them embedded into their system like Facebook and they can't be blocked.
With the hosting of web sites, most small time players that want to recover some of their hosting costs wil use a third party ad provider. Often they only have limited control on what ads that third party will throw up on their site. The problem with these third party companies is that they can get brought out, run out of money, hacked, etc and you and your web site will not hear a word about it until the aftermath.
The resolution of this issue rest solely with the web site owner (is it still Internet Brands?) who should be able to put an end to it quickly. However, as I have seen a similar style of ad on Facebook I think the issue is bigger than Pprune and Mr Smith and is a foreign campaign trying to rip off Australians by using "house hold" names illegally to bait the unaware.
Unfortunately PPrune is not hosted in Australia so our feds can't do much about it.