The tobacco industry has agreed to remove the words light and mild from cigarette packets after being warned about the use of the terms.
The Commerce Commission warned tobacco companies the use of the terms light and mild risked breaching the Fair Trading Act.
The commission investigated the labelling after the Smokefree Coalition lodged a complaint in July 2006.
Smokefree Coalition chairwoman Jane Patterson said she was disappointed the companies only received a warning.
"The tobacco industry has a long history of lying. In this latest example, they are misleading smokers by suggesting light and mild cigarettes have health benefits over regular or higher yield tobacco products.
"As the Commerce Commission decision points out, light and mild tobacco is likely to be just as deadly as regular tobacco." The Ministry of Health welcomed the Commerce Commission warning.
Senior analyst of tobacco control Brendan Baker said the terms were used to promote a product which kills around 5000 New Zealanders a year.
"Ultimately, the message for smokers and those who care about them remains the same: all cigarettes are harmful, be they light or mild, tailor-made or rollies."
New Zealand research on several brands of loose tobacco showed tobacco labelled mild was just as harmful as regular tobacco, he said.
Tobacco companies had agreed to remove the terms from their New Zealand products, Mr Baker said.
