The TV advert, created by Fallon London, showed the forks on the bike have been fixed on the wrong way. The error was noted by the director of the Association of Cycle Traders Mark Brown in a comment on the Guardian website.
The launch of the bike followed Asda's Pedal Power initiative, an attempt to encourage cycling among Britons. However consumers purchasing the bike would have to attach the pedals, front wheel, handlebars and saddle to the frame themselves.
Brown said asking beginners to assemble bikes could be dangerous. He said: "Not even Asda know how to set up their own bikes.
"This is indicative of the problems which arise from what we in the bike industry call 'flat-pack bikes'. However unlike flat-pack furniture this could seriously damage your health.
"I believe this TV advert has now been pulled but it really goes to show how dangerous it is for these retail giants to move into non-food sectors where they have no expertise."
Asda confirmed that the TV ad had been pulled, and said Fallon was already working on a replacement.
A spokeswoman said: "As soon as we spotted the error, we put the brakes on the TV ad and pulled it. Our agency is back-pedalling as we speak and we will be wheeling out the new one tomorrow.
"Thankfully the thousands of customers that have already bought one have managed to correctly follow the instructions on how to assemble the bike, unlike us."
This article was first published on brandrepublic.com