The Internet Party is seeking legal advice after Prime Minister John Key linked a video of an effigy of himself being burned by jeering youths with the party and founder Kim Dotcom.
A spokeswoman for the party said it was also seeking a retraction from TVNZ because Rawdon Christie, the host of the broadcaster's Breakfast programme which showed the video to Mr Key, did not challenge the Prime Minister on his comments.
Last week saw a furore over a promotional video published by the party which included footage on an Internet Party concert where Mr Dotcom joined in with a crowd chant of F**k John Key.
This morning on Breakfast, Mr Key was shown the video of the effigy being burnt - which had previously been highlighted by National Party aligned blogger Cameron Slater - and asked for his reaction by Mr Christie.
Mr Key did not name Mr Dotcom but appeared to be referring to him in his response when he replied: "The way I sort of see this guy, is that I think New Zealanders will call it themselves".