The poster included the words "Sex & Fun" and "Feel the Fun", which the board agreed helped the poster reach the threshold likely to cause widespread offence, taking into account the wide audience that could view the large poster in a shop window display.
In the complaint, concern was expressed about passersby seeing the posters and finding them offensive, especially school children.
Gigi's argued there were no schools nearby and no foot traffic near their store on Khyber Pass Rd, but the ASA decided there was in fact a secondary school "in reasonable proximity".
Auckland City Council had approved the advertisements, Gigi's said.
"We have lots of residents live around the store and we have listened to community suggestions before we opened the store.
"Most of the products [shape of the toys] on the images people won't know what's that unless they take a close look and read."
With regard to the fifth poster, the ASA agreed the advertisement had not been prepared with a due sense of social responsibility to consumers and to society.
The board also decided it breached rules 4 and 5 of the code of ethics relating to what would generally be deemed indecent or offensive against prevailing community standards.