An Iceland hotel recommending its own bottled water over tap water is now being investigated by consumer authorities, and has drawn criticism from others in the tourism industry.

AdaM Hotel caught the attention of the tourism industry when photos posted by Reykjavik Energy show that the hotel recommends its guests avoid drinking tap water and buy bottled water instead. Amongst the bottled waters on offer are those labeled as the hotel’s own.

Iceland’s drinking water is completely potable, having repeatedly received perfect scores for water quality from the Environmental Performance Index, leaving no reason to buy bottled water in Iceland.

The Consumers’ Association of Iceland has reportedly caught wind of the case. Consumer Association department manager Porunn Anna Arnadottir said that the owners of the hotel have been given a timeframe to respond before the association rules on the matter.

Part of what they will be examining is whether this constitutes a case of false advertising. However, offering their own brand of bottled water may already make the hotel in breach of Icelandic law. Selling your own bottled water falls under food production laws as requiring a permit, and the permit is required before the sale of products begins.

Whether the hotel is found to be violating existing Icelandic laws or not, Helga Arnadottir, the managing director of the Icelandic Travel Industry Association, said that the case demonstrates the need for a clearer framework for employers in this growing industry.

“Of course we don’t want to see these kinds of news stories,” she said.

“But the situation is things like this happen. As more employers enter the tourism industry, there will unfortunately be those who misstep like this.”