An advertiser has been ordered to remove an ad from a dairy which declared: "Ice cream makes you happy".

The ad displaying three types of Streets ice creams — Paddle Pop, Magnum and Splice — was located on the outside wall of the Tui Crescent Foodmarket in Whangarei.

The order for its removal came after a local resident complained to the Advertising Standards Authority that the ad was "extremely irresponsible" given obesity and mental health issues in New Zealand.

Google Maps/Screenshot The ad is located on the outside wall of the Tui Crescent Foodmarket in Whangarei.

In their complaint, they said the idea that "ice cream makes you happy" promoted an unhealthy relationship with food.

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Unilever Australasia, which owns the Streets ice cream brand, said the ad was installed over five years ago and had been used on storefronts at multiple locations.

The company said the statement "ice cream makes you happy" was a "puffery" statement — an "exaggerated, fanciful or vague statement that no reasonable person could possibly treat seriously or find misleading".

"Consumers will not reasonably interpret the advertisement that eating Paddle Pop, Magnum or Splice increases their level of happiness in a measurable way, or that it provides nutritional value that is beneficial to their health," the company said in its response.

"Red Bull gives you wings" was another example of a puffery statement in the market, it said.

"Consumers will not expect that the product will lead to an improvement of their physical abilities or that the statement is supported by any scientific evidence."

But in its decision, the Advertising Standards Authority upheld the complaint, saying the implicit claim that there is a link between ice cream and happiness could potentially undermine the health and wellbeing of consumers.

The large size of the the advertisement and its location on the outside of the store were also considered in its decision.

Unilever Australasia said it had appealed the decision and was awaiting the results.

"We acknowledge how important it is for New Zealanders to eat a balanced diet, maintain a healthy weight and to look after their mental wellbeing," the company said in a statement to Stuff.

"Unilever is committed to promoting mental and physical health."

Advertising Standards Authority chief executive Hilary Souter confirmed the decision was under appeal.

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