If he uses it to his advantage to get a job or some other monetary benefit or acquisition, then you have a problem
I agree, but how would one define all that? Hypotheticals:
1) Someone runs a political blog, selling ads on it, and their "Author Info" picture has them in a military uniform with several medals on it. Nowhere in the bio do they claim to have ever been in the military, just vaguely saying they "worked for Uncle Sam for a few years". They're not actually lying about the medals, nor are they directly profiting off of them, and they're not claiming military service. It is pretty clear that they're using the photo and the vague job descriptor to lead readers to believe they were in the military and therefore try to buy their opinion some weight, but they would argue that people are visiting their site for the commentary and the picture is inconsequential. Should that be illegal?
2) Someone is spinning bullshit about the danger of Sharia law on the church-speaking circuit. Comes into local Christian churches and gives a presentation about how Muslims are taking over Europe and we have to fight to keep America a Christian Nation, that sort of thing. They have a little table set up in the lobby where people can come take a pamphlet and ask questions before and after the service, and on that table they have a little display case with six impressive looking (but aren't they all to most civilians?) military medals in it. The only actual qualification they claim is their double major in Political Science and Truthology from Christian Tech, but use only vague terms when asked about the medals. Most people walk away thinking that the speaker has military service they simply don't like to talk much about, but the speaker is not in any way lying to them. They get a speaking fee and ask for donations to their ministry. Should this be illegal?