Enforcement officers waited for a band to finish a gig, then issued them with an official order to clear the city of fly-posters or face a huge fine.
Officers told the five-piece band In Vitro they had 48 hours to strip the city of every single poster advertising the gig or face a fine of up to £1,000.
The enforcement team from Brighton and Hove City Council arrived at the In Vitro gig at the Pressure Point in Richmond Place, Brighton.
They watched the Brighton-based indie rock group perform before giving them the official caution.
A spokesman for the city council said: "They were told that if they did not clear every poster from the city within 48 hours they would be liable for the full fine of about £1,000."
The band were issued with an immediate £100 fine last week and told to clear the city of the fly-posters.
The council has warned anyone fly-posting the city they will be tracked down and fined.
Brighton and Hove City Council launched a crackdown in the past month on fly-posting and officers have tracked down offenders, issuing 160 fines worth £8,000 in just four weeks on people who have been fly-posting the city.
Some venues have been given immediate fines while others, to avoid penalties, have been giving enforcement officers the details of the bands or event organisers so they are fined instead.
The officers also spoil the illegal advertising by pasting "cancelled" notices across posters in an attempt to ruin the events.
Offenders can be fined £50 per poster found to be illegally displayed.
When In Vitro were first fined last week a spokesman for the band said: "We love our city and care about its appearance and we were merely trying to advertise our gig and not do any long-lasting harm to the city or its image."
As a result of the council crackdown, performers and managements affected by the fly-posting are planning to meet to discuss advertising their events legally.
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