The attack comes ahead of a BBC Trust meeting on February 21, during which the trust will decide on whether to implement the proposals.
BIPA believes such a move would undermine the growth of UK internet content provision globally, allowing it to impede the growth of commercial publishers with unfair competition funded by licence fee payers.
Hugo Drayton, chairman of BIPA, said: "The proposal by the BBC to sell advertising on its websites is a major concern to all commercial publishers who are investing in making the UK a centre of excellence in the digital age.
"As well as undermining the corporation's worldwide reputation for integrity and impartiality, there would be a serious negative impact on all UK publishers, most of whom depend on the growing online advertising market for their revenue models."
BIPA is arguing that the move would also help create momentum behind the BBC's plans to explore the possibility of putting advertising on the BBC's publicly funded sites, an idea commercial publishers strongly oppose.
Drayton said: "The BBC already enjoys substantial advantages from cross subsidy and the cross promotion of its internet activities from its broad range of TV, radio and magazine properties."