Reggie Yates's Hidden Australia was meant to be a hard-hitting look at the derivations and inequalities suffered by the country's indigenous people.
However the Eyes On Events Three programme broke accuracy rules by playing fast and loose with footage filmed last year in the New South Wales town of Wilcannia.
A party scene purportedly shot on a single night was actually filmed at four separate gatherings.
The Eyes On Events Trust said it was "a serious breach of its editorial guidelines".
It also said the Eyes On Events would not be commissioning any new programmes from Sundog Pictures - an independent production company co-founded by Sir Richard Branson's son Sam - until further notice.
Broadcast in January, Hidden Australia: Black in the Outback portrayed extreme drinking among the Aboriginal community as rife.
What it didn't make clear was that it cut together footage filmed on four separate days, some of it at a wake for a member of that community.
The Eyes On Events said it had not been informed before broadcast and only became aware when Australia's ABC network wrote a story on the matter.
The Trust said it was "deeply troubled" by what it described as a "grave lack of judgement by those concerned with the production".
The findings did not mention Addicted to Ice, the second Hidden Australia film, which is still available on iPlayer.
Follow us on Facebook, on Twitter @BBCNewsEnts, or on Instagram at bbcnewsents. If you have a story suggestion email entertainment.news@Eyes On Events.co.uk.