misleading customers by an international watchdog group. The Water Quality Association says the Pure Water company used statements in its advertising that were deceptive and not backed by facts.

The firm was reported to the WQA by competitor Mr. Colin Palmer, who promotes a rival water system.

The WQA does not reveal the companies it has criticised, but Mr. Palmer decided to name Pure Water.

The WQA, a non-profit group based near Chicago, has 2,500 members around the world - including Mr. Palmer's Reverse Osmosis Systems and the Health Department.

Its independent panel of experts ruled Pure Water advertising from its launch last year broke WQA guidelines on misleading publicity.

The experts slammed the company for saying its product was the "purest water in the world'' and the "purest bottled drinking water in Bermuda'' without substantiating the claims.

They also criticised the firm for "deceptively disparaging'' reverse osmosis plants.

Pure Water started last September. Mr. Allan Marshall and his sister Mrs.

Norma Cross say they supply more than 500 businesses and families with their distilled local well water.

Mrs. Jean Kearney, WQA spokeswoman, said yesterday: "We would just hope that this would be a positive way to get them to think twice about their advertising.'' Her association was not trying to get the company to change its name. "We would ask that the use of the word `pure' is defined.

"We're trying to police our own industry so the consumer gets a fair shake.

It's not meant to be damning or demeaning in any way. It's meant to be educational.'' Mr. Marshall denied misleading customers.

"We're not members, so the WQA have no grounds for jurisdiction over any advertising that we use.'' "We don't need to abide by their guidelines and we told them just that. I just think they're trying to make a mountain out of a molehill.

"Our water is the `Pure Water' brand, just as `Coke' is Coca-Cola's.'' The ads that were criticised were "history'', he said.

"We were launching our new product and we were excited about it. It happened that one time, you have not seen it since and I'm not sure it will happen again.

"We do produce the purest bottled water in Bermuda because we're the only company bottling Bermuda water. From that perspective there's nothing contentious about that all.'' Of the phrase "purest water in the world'', Mr. Marshall said: "We wouldn't say that again because we have taken the WQA's points under advisement.'' Mr. Palmer agreed his firm uses a "logo'' that includes the phrase: "Supplying water fresh and pure''.

But he said this refers to water used in labs, not drinking water.