News International retaliated, calling the move a "dirty tricks campaign to discredit thelondonpaper" and claiming it had photographic evidence of Associated dumping copies not just of Lite, but also the Evening Standard's Home and Property section.
It said it sent photos to senior executives at Associated in March, highlighting the extent of this dumping
An NI spokesman said: "Recognising that both companies have a problem with isolated rogue distributors, we offered to work with Associated to resolve the problem. We were disappointed that Associated ignored this initiative and has resorted to crude propaganda."
The Associated footage was shot on three separate occasions at three different locations - near Barbican, St Paul's and Liverpool Street - and verified by a former Scotland Yard detective inspector.
In each case, the distributors removed or concealed their branded jackets before discarding the copies.
This news follows Westminster Council's announcement last week that the free newspapers could be banned from the borough's streets if the publishers don't foot the bill for additional recycling. The council wants £500,000 over two years to cover the set-up costs of the waste collection operation.
In February News International raised distribution of thelondonpaper from around 400,000 copies to around 500,000 copies a day.
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