The media regulator ruled that the charity coalition is "a body working for a political end", forcing it to pull its 'click' ad, in which celebrities click their fingers every three seconds to symbolise a child dying from poverty.
Adrian Lovett, campaigns director at Oxfam, said: "We may be delivering a message to politicians, but we see our message as moral rather than political."
The ruling coincides with research findings showing that nearly half the public thinks that Bob Geldof, Bono and other celebrities founded the Make Poverty History campaign, with only 4 per cent of people aware that the campaign was set up by a charity coalition.
"The campaign was hijacked by circumstances, not by intent, and the celebrities got the profile," said Alex Haxton, director of operations at overseas development charity World Emergency Relief, which commissioned the research.
"It must not happen again."
- See Newsmaker, page 11.