The Advertising Standards Complaints Board has ruled the New Zealand Herald's front-page advertisment from Hobson's Pledge breached the Advertising Standards Code.
The wraparound ad, which featured on the Herald's newspaper edition on 7 August, urged readers to sign a petition to return the seabed and foreshore to "public ownership".
The New Zealand Herald faced a large public backlash following publication, and was heavily scrutinised by readers and groups such as Kawea te Rongo, The Māori Journalists Association, Te Pāti Māori, and the national Māori news service provider, Waatea News.
The Advertising Standards Authority (ASA) said it received 672 complaints regarding the advertisement and accepted 655 complaints to go to its complaints board.
The authority ruled three claims in the ad were "misleading" and emphasised the importance of factual accuracy in advocacy advertising.
"The complaints board ruled three claims in the two-page wrap advertisement were materially misleading as to the effect of customary marine title under the Marine and Coastal Area (Takutai Moana) Act 2011."
While the board acknowleged it was an advocacy advertisement and was "sufficiently" identified as one, it said the claims were in breach of the Truthful Presentation and Social Responsibility principles in the Advertising Standards Code.
ASA said other concerns raised by complainants were considered by the complaints board, however, it ruled there were no further breaches of the Advertising Standards code.
"This included a majority decision the advertisement did not reach the threshold to be considered offensive in the context of advocacy advertising,"
ASA said the majority of the board took into account the protection for freedom of expression in the New Zealand Bill of Rights Act, and noted, "where strong views were expressed, this may cause some level of offence to those who hold contrary views".
NZME revising its policy
NZME chief executive Michael Boggs said in a statement to RNZ it welcomed the ASA's decision.
"We received feedback from our own team, our subscribers and clients and we've taken that feedback seriously. Our advertising acceptability policy includes a requirement that factual information is able to be substantiated by the advertiser and today's ASA decision confirms the advertiser did not meet this requirement.
"We've undertaken a thorough review of our advocacy advertising policy and processes, including a focus on how we can ensure claims made in advocacy ads are substantiated by the advertiser."
Boggs said NZME's revised policy will be finalised in the coming weeks.
Hobson's Pledge has been approached for comment.
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