The ad, created by Bartle Bogle Hegarty, was cleared by the BACC but is now under investigation by the Advertising Standards Authority after parents complained it was "disgusting".
In a little over a week, the ad has attracted 384 complaints from viewers.
An ASA spokesperson said: "Viewers found the ad irresponsible and that it would encourage children to emulate bad behaviour."
It is not the first time that the fast-food chain has landed itself in trouble with the ASA.
At the beginning of April the ASA banned another ad made by BBH for KFC's Mini Fillet chicken burger after the watchdog ruled that the burger shown in the ad was bigger than the actual product.
The ASA said it could take up to six weeks to get a decision on the future of the lastest KFC ad.
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