The poster, produced by the government-funded ThinkIsrael.com, claimed: "You can travel the entire length of Israel in six hours."
The poster also contained a picture of Qumran on the Dead Sea, which is in the occupied territories.
An ASA ruling said: "We noted Qumran was in the occupied West Bank, not the state of Israel, and considered that the ad was therefore misleading."
It also slammed ThinkIsrael.com's "lack of response and apparent disregard for the code".
The ASA told ThinkIsrael.com to withdraw the ad.
The poster also contained a picture of Qumran on the Dead Sea, which is in the occupied territories.
An ASA ruling said: "We noted Qumran was in the occupied West Bank, not the state of Israel, and considered that the ad was therefore misleading."
It also slammed ThinkIsrael.com's "lack of response and apparent disregard for the code".
The ASA told ThinkIsrael.com to withdraw the ad.
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