Looks like someone has taken the twins audition video and some footage from UK Big Brother and chopped it about a bit. I know the 'Stars' of the video were not involved in the editing as they were still in the Big Brother house last night.
Its probably not illegal, but could fall into questionable business practices. Only thing is who would regulate it, as the company doing those ads could be over seas, etc, and thus immune to certain business laws and ethos.