In addition to facing charges of criminal damage, Westminster Council, which covers Central London, says it will name and shame music CEOs who are behind the flyposting on a website if they fail to stop.
The issue has become a hot potato for music firms, who are believed to save tens of million of pounds each year by using illegal flyposting instead of traditional advertising to sell artists. Sony alone is believed to save 拢3m annually and BMG as much as 拢6m.
Last week, Sony Music Entertainment escaped legal action brought by Camden Council over its flyposting after it agreed to scrap the practice across England and Wales.
However, rival BMG still faces the threat of prosecution as part of the London borough's landmark war on anti-social behaviour. Camden had issued summonses against Sony's managing director Catherine Davis and marketing director Joe Headland.
Westminster has argued that its tougher approach is because the fines it can impose are too small to deter the music giants.
Alan Bradley, cabinet member for street environment, told the Financial Times: "We are no longer prepared to clean up after wealthy corporations. The fines we can impose barely register with these companies. We need to make the CEOs personally responsible for the crimes committed on their behalf."
Westminster plans to write to the CEOs of music companies caught flyposting in the borough in the past six months, warning them that more flyposting will lead to criminal damage charges.
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